Problem

A security analyst has regressed the monthly returns on Berkshire Hathaway equity shares o...

A security analyst has regressed the monthly returns on Berkshire Hathaway equity shares over the past five years against those on the Standard&Poor’s 500 stock index over the same period. The resulting regression equation is rBH = 0.04 + 0.72rSP. Use this equation and any other information you deem appropriate to estimate Berkshire Hathaway’s equity beta.

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Solutions For Problems in Chapter 8