Yahoo Finance reported the beta value for Coca-Cola was .82 (Yahoo Finance website, June 30, 2016). Betas
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The data contained in the DATAfile named CocaCola show the monthly percentage returns for the S&P 500 and the Coca-Cola Company for August 2015 to May 2016.
a. Develop a scatter diagram with the S&P % Return as the independent variable.
b. What does the scatter diagram developed in part (a) indicate about the relationship between the returns of the S&P 500 and those of the Coca-Cola Company?
c. Develop the least squares estimated regression equation.
d. Provide an interpretation for the slope of the estimated equation (that is, the beta).
e. Is your beta estimate close to .82? If not, why might your estimate be different?
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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Related Book For
Modern Business Statistics With Microsoft Excel
ISBN: 9781337115186
6th Edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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