Question: Please answer and show the formuals used. ANNUAL RETURN DATA FOR 2 STOCKS AND S&P 5 0 0 Part A . Report the alphas for
Please answer and show the formuals used. ANNUAL RETURN DATA FOR STOCKS AND S&P
Part A Report the alphas for Apple stock, Oracle stock, and the portfolio of apple and oracle, also indicate whether
each of these investment alternatives outperformed or underperformed the market index.
alpha
outperform or underperform?
Part B Report the betas for Apple stock, Oracle stock, and the portfolio of apple and oracle, also indicate whether
each of these two stocks is an aggressive stock or a defensive stocks
beta
defensive or aggressive?
Part C Report the rsquared values for Apple stock, oracle stock, and the portfolio of apple and oracle from
regressing each alternative's annual returns on S&P returns
rsquared
Part D Calculate the weighted average alpha, weighted average beta, and weighted average squared value of
apple's squared value and Oracle's squared value. If the value is different from the portfolio squared
value reported in Part what does that mean?
weighted average alpha
weighted average beta
weighted average rsquared
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