Question: Please show formulas on Excel. Year S&P Total return Risk free rate Stock A return Stock B return 1990 -3.10% 7.89% -11.20% -10.00% 1991 30.47%
Please show formulas on Excel.
| Year | S&P Total return | Risk free rate | Stock A return | Stock B return |
| 1990 | -3.10% | 7.89% | -11.20% | -10.00% |
| 1991 | 30.47% | 5.86% | 32.57% | 16.99% |
| 1992 | 7.62% | 3.89% | 25.56% | 13.84% |
| 1993 | 10.08% | 3.43% | 53.07% | 3.22% |
| 1994 | 1.32% | 5.32% | 146.90% | -2.58% |
| 1995 | 37.58% | 5.94% | 50.00% | 20.00% |
| 1996 | 22.96% | 5.52% | 133.47% | 4.89% |
| 1997 | 33.36% | 5.63% | 18.01% | 0.13% |
| 1998 | 28.58% | 5.05% | 123.26% | -10.30% |
| 1999 | 21.04% | 5.08% | 201.36% | 0.51% |
| Part A. Run regressions and report the following statistics for Stock A, Stock B, and Portfolio respectively |
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| Stock A | Stock B |
| alpha |
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| beta |
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| r-squared |
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| Part B. based on your answers in Part A, answer the following questions |
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| Which stock had the best performance? |
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| Which stock had the worst performance? |
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| Which stock is an aggressive asset? |
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| Which stock is a defensive asset? |
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| What is the economic explanation of the r-squared value for the portfolio? |
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