Question: You used multiple regression to express Stock ABC's expected return in terms of the S&P 500 Index and annualized GDP. The estimated returns and factor

 You used multiple regression to express Stock ABC's expected return in

You used multiple regression to express Stock ABC's expected return in terms of the S&P 500 Index and annualized GDP. The estimated returns and factor exposure (beta) for both variables are shown below: S&P 500 Index Annualized GDP Factor Exposure (beta) 1.12 1.43 Estimated value for next period 2.3% 1.34% If your calculated alpha is 0.02, then what is your estimate return for Stock ABC given these results from multiple regression? State your answer as a raw number, not in decimal form (ie. 13.21 not 0.1321) with two decimal places. (HINT: keep all numbers in decimal form)

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!