Question: What does standard error and alpha measure in a regression? A. standard error is the standard deviation of the alphas. Alpha or the specific excess

What does standard error and alpha measure in a regression?

  • A. standard error is the standard deviation of the alphas. Alpha or the specific excess return is not explained by the market.

  • B. Standard error is the mean of residuals and alpha is the specific excess return which is explained by the market.

  • C. Standard error is the standard deviation of beta and alpha is the specific excess return which is not explained by the market.

  • D. Standard error is the standard deviation of residuals and alpha is the specific excess return which is not explained by the market.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

What does standard error and alpha measure in a regression? A. standard error is the standard deviation of the alphas. Alpha or the specific excess return is not explained by the market. B. Standard...

Q:

A university Endowment Fund is evaluated using Top-Down and Bottom-Up analysis, an against a 40:60 (Bonds:Equity) benchmark. The evaluation used the Fund and Benchmar performance over a 10 year...

Q:

Ex 11-2... question is attached... Exercise 11-22 Break-even sales and sales mix for a service company Yellow Dove Airways provides air transportation services between Portland and Minneapolis. A...

Q:

i need this two papers 22 MODULE V: RISK AND RETURN INTRODUCTION To better understand the relationship between return and ris, we must know how return andre med tit. RATE OF RETURN If you buy at your...

Q:

1. The weight of a product is measured in pounds. A sample of 64 units is taken from a batch. The sample yielded the following results: X = 70 lbs. and s=16 lbs. Calculate a 99 percent confidence...

Q:

3 - 20 Points Data found in Assignment 3 Data excel file. Deliverable 1 (5 points): A manager is under pressure to increase daily net profits. Data has been collected for the past 50 days indicating...

Q:

ID Salary Compa Midpoint Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 60.8 26.1 35.4 61.3 46.8 74 41.8 22.5 82.5 23 24.1 65.1 42 23.9...

Q:

ID Salary Compa Midpoint Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 66.6 26.4 35.3 56 47.5 75.5 41.5 22.8 74 24.1 23.6 63.4 41.4 23 23.6 44.1...

Q:

ID Salary Compa Midpoint Age 17 29 50 16 24 48 12 6 43 44 18 3 28 39 21 9 20 47 25 19 11 42 46 4 22 15 41 33 27 35 1 40 49 31 38 7 13 10 23 30 45 26 5 36 37 14 8 32 34 2 69.6 79.9 67.2 47.1 56.4 66.3...

Q:

Q3 The table to the left shows monthly return data for the last 20 years. In addition to the date, It includes... "Fund's Excess Returns the returns to a mutual fund you want to analyze minus the...

Q:

Joseph purchased merchandise on account on April 5 for $4,896. On April 7, Joseph paid $48 of freight charges for the goods purchased on April 5. On April 8, Joseph returned goods purchased on April...

Q:

Let L: M22 M22 be the linear transformation defined (a) Find a basis for ker L. (b) Find a basis for range L. L(A)= A - A

Q:

Company A has an expected return of 1 2 % and a standard deviation of 4 % Company B has an expected return of 1 5 % and a standand deviation of 4 % . From a risk, return perspective, in which company...

Q:

In the Long - Term Analysis sheet, using the formula rate = amount of increase / base , insert a formula in cell C 6 that will calculate the percentage by which advertising spending increased from...

Q:

What problems develop when the head of HR reports to any executive other than the chief executive officer?

Q:

What is the fundamental difference between a line activity and a staff activity? Provide two examples of each in a health care setting.

Q:

Why do experts contend that a primary characteristic of line personnel is present within a clearly defined staff activity such as HR or Finance?