Question: Create regression for the bank using CAPM model below and making comments about relationship between variables to expected return Year Risk-free rate Market return Beta
Create regression for the bank using CAPM model below and making comments about relationship between variables to expected return
| Year | Risk-free rate | Market return | Beta | Expected return |
| Jan-19 | 1.82 | 9.1 | 0.7 | 6.916 |
| Feb-19 | 1.79 | 8.84 | 0.7 | 6.725 |
| Mar-19 | 1.47 | 8.83 | 0.7 | 6.622 |
| Apr-19 | 1.67 | 8.64 | 0.7 | 6.549 |
| May-19 | 1.59 | 9.13 | 0.7 | 6.868 |
| Jun-19 | 1.68 | 9.32 | 0.7 | 7.028 |
| Jul-19 | 1.64 | 8.77 | 0.7 | 6.631 |
| Aug-19 | 1.13 | 8.75 | 0.7 | 6.464 |
| Sep-19 | 1.24 | 9.5 | 0.7 | 7.022 |
| Oct-19 | 1.54 | 9.56 | 0.7 | 7.154 |
| Nov-19 | 1.53 | 9.23 | 0.7 | 6.92 |
| Dec-19 | 1.82 | 9.09 | 0.7 | 6.909 |
| Jan-20 | 1.4 | 8.81 | 0.7 | 6.587 |
| Feb-20 | 1.05 | 9.32 | 0.7 | 6.839 |
| Mar-20 | 0.75 | 10.44 | 0.7 | 7.533 |
| Apr-20 | 0.6 | 9.87 | 0.7 | 7.089 |
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