Buford Lightfoot, a stock market analyst, is interested in finding a model to describe the returns for
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Buford Lightfoot, a stock market analyst, is interested in finding a model to describe the returns for different stocks. He estimates the following regression:
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Rit = a + BRm,t + Bli,t + &t where Rm1 = return on the S&P 500 in month t Ri= return on stock i in month t Ii,t = index for stock i's industry in month t The results of this regression are Coefficient Intercept Rm I Estimate -3.45 1.32 -.32 Standard error 2.32 .65 .10 Interpret the results of the regression and compute the t-values for the coefficients.
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Related Book For
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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