Use the stock return data in the table to answer the following questions. Year Market Teldar 1
Question:
Use the stock return data in the table to answer the following questions.
Year | Market | Teldar |
1 | 6% | 12% |
2 | 18 | 31 |
3 | -3 | -12 |
4 | 8 | 21 |
5 | 14 | 2 |
Basic Statistics
The stock market returns and Teldar's stock returns comprise ------ data. The market's mean return is ------, while Teldar's mean stock return is -------. The standard deviation of the market's returns is ----- while the standard deviation of Teldar's returns is -------.
Regression Results
There is paired X and Y variable data entered. A regression model of stock returns would make Teldar's returns the dependent variable and the market returns the independent variable. The calculator runs a regression model of the Y variable on the X variable. The equation of the regression characteristic line is:
Teldar's Return =--------- + Market Return x ----.
The correlation coefficient between the two variables is -------
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill