Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Simple Linear Regression
One measure of the risk or volatility of an individual stock is the standard deviation of the total return (capital appreciation plus dividends) over several periods of time. Although the standard deviation is easy to compute, it does not take into account the extent to which the price of a given stock varies as a function of a standard market index, such as the S&P 500.As a result, many financial analysts prefer to use another measure of risk referred to as beta. Betas for individual stocks are determined by simple linear regression. The dependent variable is the total return for the stock and the independent variable is the total return for the stock market.* For this case problem we will use the S&P 500 index as the measure of the total return for the stock market, and an estimated regression equation will be developed using monthly data. The beta for the stock is the slope of the estimated regression equation (b1). The data contained in the file named Beta provides the total return (capital appreciation plus dividends) over 36 months for eight widely traded common stocks and the S&P 500.The value of beta for the stock market will always be 1; thus, stocks that tend to rise and fall with the stock market will also have a beta close to 1. Betas greater than 1 indicate that the stock is more volatile than the market, and betas less than 1 indicate that the stock is less volatile than the market. For instance, if a stock has a beta of 1.4, it is 40% more volatile than the market, and if a stock has a beta of .4, it is 60% less volatile than the market.
You have been assigned to analyze the risk characteristics of these stocks. Prepare a report that includes but is not limited to the following items.
a. Compute descriptive statistics for each stock and the S&P 500. Comment on your results. Which stocks are the most volatile?
b. Compute the value of beta for each stock. Which of these stocks would you expect to perform best in an up market? Which would you expect to hold their value best in adown market?
c. Comment on how much of the return for the individual stocks is explained by the market.
Research Question: Percentage of students who drank a can, bottle, or glass of soda or pop (not including diet soda or diet pop) at least 1 time per day during the seven days
Ask question #MinimumAgency revenues. An economic consultant was retained by a large employment agency in a metropolitan area to develop a regression model for predicting monthly a
Characteristics of index number
LIST OUT THE SOURCES OF PRIMARY AND SECONDARY DATA
All Excel output should be copied into a single Word document where you must enter all of your responses to the questions below. Format the document professionally so it flows well
In Ireland, Davoren et el (2015) report that that 65.2% of male University students self-reported alcohol consumption levels which are classified as hazardous. A random sample of
What is a sole proprietorship? A sole proprietorship is a form of business organization that is owned by one person. The owner is referred to as a sole proprietor. In accoun
Discuss the role that racism played in public policies related to urban housing throughout the twentieth century. Did this racism manifest itself solely on an individual level (i.e
Use your data to perform the following tasks. 1. Based on the variables, construct a design that consists only main effects of one categorical IV and at least two continuous DV
1) Define and explain the following: i) Ordering cost ii) Safety stock iii) Re-order point 2) Profit Volume Chart. 3) Discuss the various techniques of financial statement analysis
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd