You are provided with the following monthly expected returns, each of which is represented by E(Ri), and betas for the following stocks. Please estimate the capital asset pricing model and draw conclusions about the significance and realism of the results by using the R-squared and “t” statistics. Assume a one-tailed test. SymbolE(Ri)BetaAA9.601.30AXP9.601.00BA12.000.80C9.601.35CAT14.401.70CSCO7.200.95KO4.800.60DIS7.200.95DD7.200.70ED4.800.55XOM4.800.60GE6.000.90GM7.200.80HPQ4.801.30HD4.800.90HON10.801.15INTC9.601.10IBM10.801.40IP4.800.80JNJ3.600.35MCD7.200.50MSFT9.601.20MMM6.000.90JPM12.001.30PG4.800.45D7.200.50T7.201.00PRU13.201.10WMT12.000.80WFC8.401.20

Here dependent variable (y) = Beta Independent variable (x) = E(Ri) Sample size (n) = 30Assume level…

You are provided with the following monthly expected returns, each of which is represented by E(Ri), and betas for the following stocks. Please estimate the capital asset pricing model and draw conclusions about the significance and realism of the results by using the R-squared and “t” statistics. Assume a one-tailed test.

You are provided with the following monthly expected returns, each of which is represented by E(Ri), and betas for the following stocks. Please estimate the capital asset pricing model and draw conclusions about the significance and realism of the results by using the R-squared and “t” statistics. Assume a one-tailed test.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter4: Equations Of Linear Functions

Section4.5: Correlation And Causation

Problem 2AGP

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Symbol	E(Ri)	Beta
AA	9.60	1.30
AXP	9.60	1.00
BA	12.00	0.80
C	9.60	1.35
CAT	14.40	1.70
CSCO	7.20	0.95
KO	4.80	0.60
DIS	7.20	0.95
DD	7.20	0.70
ED	4.80	0.55
XOM	4.80	0.60
GE	6.00	0.90
GM	7.20	0.80
HPQ	4.80	1.30
HD	4.80	0.90
HON	10.80	1.15
INTC	9.60	1.10
IBM	10.80	1.40
IP	4.80	0.80
JNJ	3.60	0.35
MCD	7.20	0.50
MSFT	9.60	1.20
MMM	6.00	0.90
JPM	12.00	1.30
PG	4.80	0.45
D	7.20	0.50
T	7.20	1.00
PRU	13.20	1.10
WMT	12.00	0.80
WFC	8.40	1.20