Alpha and Regression
Using the regression equation, find the alpha for security C, after determining that it isn't fairly priced.
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12. Portfolio has beta=-0.5; its alpha is -2%, risk free rate is 5%; market expected return...
12. Portfolio has beta=-0.5; its alpha is -2%, risk free rate is 5%; market expected return is 8%. Find market risk premium R_mt, expected return r_portfolio and excess return R_portfolio. Use formula R_portfolio =beta portfolio *R_market]+alpha+e_portfolio; Where for each security, R=r-r_free is excess return; Is such portfolio over-, under- or fairly priced? Assume, portfolio is well diversified. Which term (s) should be negligible? Follow the guideline below to take the steps using a well- diversified portfolio to build an arbitrage...
Outline the general regression equation for a single index model and, from this, outline the expected...
Outline the general regression equation for a single index model and, from this, outline the expected return-beta relationship. Explain what is meant by the Security Characteristic Line, making reference to the alpha and beta estimates.
a. Using the pairs of values for all 10 points, find the equation of the regression...
a. Using the pairs of values for all 10 points, find the equation of the regression line b. After removing the point with coordinates (1,2), use the pairs of values for the remaining 9 points and find the equation of the regression line. c. Compare the results from parts (a) and (b). -LL.... ONACO NO 4 6 8 10 a. What is the equation of the regression line for all 10 points? y = + x (Round to three decimal...
a. Using the pairs of values for all 10 points, find the equation of the regression...
a. Using the pairs of values for all 10 points, find the
equation of the regression line.
b. After removing the point with coordinates (7,1), use the
pairs of values for the remaining 9 points and find the equation of
the regression line.
c. Compare the results from parts (a) and (b).
a. What is the equation of the regression line for all 10
points?
y=___+___x (Round to three decimal places as needed.)
b. What is the equation of the...
a. Using the pairs of values for all 10 points, find the equaton of the regression...
a. Using the pairs of values for all 10 points, find the equaton of the regression ine b. After removing the point with coordinates (1.3), use the pairs of values for the remaining 9 points and find the equation of the regression line c Compare the results rom parts (a) and (b) a. What is the equation of the regression line for all 10 points? (Round to three decimal places as needed) b, what is the equationofthe regression line tor...
Consider the following regression model: Xi = Bo + Bixi + y; where yi is individual...
Consider the following regression model: Xi = Bo + Bixi + y; where yi is individual i's University GPA and xi is the individual's high school grades. a. What do you think is in ui? Do you think E[ulx) = 0? Suggest a variable that you think might affect University GPA that isn't included in the regression equation but should be. c. What sign of bias would you expect in an OLS regression of y on x? Briefly explain. d....
Which of the following is TRUE of efficient-market hypothesis? Since stocks are fully and fairly priced,...
Which of the following is TRUE of efficient-market hypothesis? Since stocks are fully and fairly priced, it follows that investors should not waste their time trying to find and capitalize on miss-priced (undervalued or overvalued) securities. Securities are typically in disequilibrium, meaning they are fairly priced and their expected returns are more than their required returns. At any point in time, security prices fully reflect all internal information available about the firm and its securities, and these prices are insensitive...
In this question, I'm asked to find P and alpha so that the forces are a...
In this question, I'm asked to find P and alpha so that the
forces are a couple. I have found P and alpha, so my question is
related to finding the moment of the couple. In the solution, the
forces are broken down into x and y components, and the components
are multiplied by their respective perpendicular distances. Using
this method, the moment was found to be 272 Ncm. I was wondering
why it isn't possible to instead find the...
After running a regression analysis we calculated an F test and the significance level was 0.15....
After running a regression analysis we calculated an F test and the significance level was 0.15. What is your decision at alpha 0.05? Group of answer choices Don't reject the null hypothesis and conclude the equation is not significant and try something else. ... Reject the null hypothesis and conclude the equation is significant. Reject the null hypothesis and conclude that the coefficient b1 is significant and keep it in the equation. Don't reject the null hypothesis and conclude that...
b. What is the equation of the regression line for the set of points? The best...
b. What is the equation of the regression
line for the set of points?
The best predicted weight for a bear with a
chest size of 48 inches is .......nothing pounds.
The best predicted temperature when a bug
is chirping at 3000 chirps per minute is .........F.
Use the given data to find the equation of the regression line. Examine the scatterplot and identify a characteristic of the data that is ignored by the regression line. x 10 15 y...
12. Portfolio has beta=-0.5; its alpha is -2%, risk free rate is 5%; market expected return is 8%. Find market risk premium R_mt, expected return r_portfolio and excess return R_portfolio. Use formula R_portfolio =beta portfolio *R_market]+alpha+e_portfolio; Where for each security, R=r-r_free is excess return; Is such portfolio over-, under- or fairly priced? Assume, portfolio is well diversified. Which term (s) should be negligible? Follow the guideline below to take the steps using a well- diversified portfolio to build an arbitrage...
a. Using the pairs of values for all 10 points, find the equation of the regression line b. After removing the point with coordinates (1,2), use the pairs of values for the remaining 9 points and find the equation of the regression line. c. Compare the results from parts (a) and (b). -LL.... ONACO NO 4 6 8 10 a. What is the equation of the regression line for all 10 points? y = + x (Round to three decimal...
a. Using the pairs of values for all 10 points, find the
equation of the regression line.
b. After removing the point with coordinates (7,1), use the
pairs of values for the remaining 9 points and find the equation of
the regression line.
c. Compare the results from parts (a) and (b).
a. What is the equation of the regression line for all 10
points?
y=___+___x (Round to three decimal places as needed.)
b. What is the equation of the...
a. Using the pairs of values for all 10 points, find the equaton of the regression ine b. After removing the point with coordinates (1.3), use the pairs of values for the remaining 9 points and find the equation of the regression line c Compare the results rom parts (a) and (b) a. What is the equation of the regression line for all 10 points? (Round to three decimal places as needed) b, what is the equationofthe regression line tor...
Consider the following regression model: Xi = Bo + Bixi + y; where yi is individual i's University GPA and xi is the individual's high school grades. a. What do you think is in ui? Do you think E[ulx) = 0? Suggest a variable that you think might affect University GPA that isn't included in the regression equation but should be. c. What sign of bias would you expect in an OLS regression of y on x? Briefly explain. d....
In this question, I'm asked to find P and alpha so that the
forces are a couple. I have found P and alpha, so my question is
related to finding the moment of the couple. In the solution, the
forces are broken down into x and y components, and the components
are multiplied by their respective perpendicular distances. Using
this method, the moment was found to be 272 Ncm. I was wondering
why it isn't possible to instead find the...
b. What is the equation of the regression
line for the set of points?
The best predicted weight for a bear with a
chest size of 48 inches is .......nothing pounds.
The best predicted temperature when a bug
is chirping at 3000 chirps per minute is .........F.
Use the given data to find the equation of the regression line. Examine the scatterplot and identify a characteristic of the data that is ignored by the regression line. x 10 15 y...
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