You have estimated the following linear regression model for Tesla stock (TSLA) returns: Regression Model Output for
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Question:
You have estimated the following linear regression model for Tesla stock (TSLA) returns:
Coefficients | Standard Error | t-statistics | p-value | |
Intercept | 0.0447 | 0.0237 | 1.8847 | 0.0645 |
Market | 1.9887 | 0.5161 | 3.8538 | 0.0003 |
- (1 point) Determine whether TSLA is cyclical, defensive, or hedging stock against the market risk.
- (1 point) Determine whether TSLA is underpriced, overpriced, or fairly priced according to the CAPM.
- (1 point) Based on 5% threshold for statistical significance, explain whether the number supporting your inference in Part B is statistically significant.
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
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