Calculate the 5-year monthly returns for Oracle Corporation (ORCL) ending on or around June 1, 2020....

 

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Calculate the 5-year monthly returns for Oracle Corporation (ORCL) ending on or around June 1, 2020. Calculate the corresponding 5-year monthly returns for the S&P 500 (^GSPC). a) Calculate the covariance between the return series b) Calculate the Beta implied by that covariance c) Graph the returns with the S&P returns on the x-axis and the Oracle returns on the y-axis. Add a trendline. d) Use the regression tool (under Tools/Data Analysis) to calculate a regression with Oracle returns as the y-variable, S&P returns as the x- variable. e) What is the 95% confidence interval for your Beta? What does that mean? f) What proportion of the variance in Oracle's returns is explained by the CAPM? g) Given your calculated Beta, if you expect a 7% return for the S&P 500 over the next year, and if short term rates are currently at 0.5%, what returns do you expect for Oracle? Calculate the 5-year monthly returns for Oracle Corporation (ORCL) ending on or around June 1, 2020. Calculate the corresponding 5-year monthly returns for the S&P 500 (^GSPC). a) Calculate the covariance between the return series b) Calculate the Beta implied by that covariance c) Graph the returns with the S&P returns on the x-axis and the Oracle returns on the y-axis. Add a trendline. d) Use the regression tool (under Tools/Data Analysis) to calculate a regression with Oracle returns as the y-variable, S&P returns as the x- variable. e) What is the 95% confidence interval for your Beta? What does that mean? f) What proportion of the variance in Oracle's returns is explained by the CAPM? g) Given your calculated Beta, if you expect a 7% return for the S&P 500 over the next year, and if short term rates are currently at 0.5%, what returns do you expect for Oracle?

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a The covariance between the return series is 00001 CovXY EXY EXEY or We can find out the monthly cl... View the full answer