Statistics for Management and Economics (Book Only)
11th Edition
ISBN: 9781337296946
Author: Gerald Keller
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 4.5, Problem 111E
To determine
Interpret the values of beta coefficient and coefficient of determination.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following table shows the total return and the number of funds for four categories of mutual funds.
Excel File: data03-17.xlsx
Type of Fund Number of Funds Total Return (%)
Domestic Equity 9,191 4.65
International Equity 2,621 18.15
Specialty Stock 1,419 11.36
Hybrid 2,900 6.75
a. Using the number of funds as weights, compute the weighted average total return for these mutual funds. (to 2 decimals)
b. Is there any difficulty associated with using the "number of funds" as the weights in computing the weighted average total return in part (a)? Discuss. What else might be used for weights?
(i) Using "number of funds" as weights will only be a good approximation if the amount invested in various funds is approximately equal. The amount invested in each fund could be used for weights.
(ii) Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. There is no need to use a different weight.
(iii) Using "number of…
Question A.
How do individual companies respond to economic forces throughout the globe? One way to explore this is to see how well rates of return for stock of individual companies can be explained by stock market indexes thar reflect particular parts of the world. The table below shows monthly rates of return for two companies, Microsoft (headquartered in the United States) and China Telecom (in China), along with three indexes: the Hang Seng (Hong Kong), the FTSE 100 (London), and the S&P 500 (New York).
1. Which index most explains changes in Microsoft’s stock price? a. Run three separate regressions (one for each of the indexes) to assess the percentage changes in Microsoft stock explained by each of the three indexes. Report the adjusted r-square and p-value of the coefficient for each index. Which indexes, if any, are significant?
b. Now run a single multivariate regression model with all three indexes included. Which indexes, if any, are now considered significant? Report…
talk about the following stock market indices
Dow Jones industrial average
Nasdaq Composite
CAC 40
Chapter 4 Solutions
Statistics for Management and Economics (Book Only)
Ch. 4.1 - Prob. 1ECh. 4.1 - Prob. 2ECh. 4.1 - Prob. 3ECh. 4.1 - Prob. 4ECh. 4.1 - Prob. 5ECh. 4.1 - Prob. 6ECh. 4.1 - Prob. 7ECh. 4.1 - Prob. 8ECh. 4.1 - Prob. 9ECh. 4.1 - Prob. 10E
Ch. 4.1 - Prob. 11ECh. 4.1 - Prob. 12ECh. 4.1 - Prob. 13ECh. 4.1 - Prob. 14ECh. 4.1 - Prob. 15ECh. 4.1 - Prob. 16ECh. 4.1 - Prob. 17ECh. 4.1 - Prob. 18ECh. 4.1 - Prob. 19ECh. 4.1 - Prob. 20ECh. 4.1 - Prob. 21ECh. 4.1 - Prob. 22ECh. 4.1 - Prob. 23ECh. 4.1 - Prob. 24ECh. 4.1 - Prob. 25ECh. 4.1 - Prob. 26ECh. 4.2 - Prob. 27ECh. 4.2 - Prob. 28ECh. 4.2 - Prob. 29ECh. 4.2 - Prob. 30ECh. 4.2 - Prob. 31ECh. 4.2 - Prob. 32ECh. 4.2 - Prob. 33ECh. 4.2 - Prob. 34ECh. 4.2 - Prob. 35ECh. 4.2 - Prob. 36ECh. 4.2 - Prob. 37ECh. 4.2 - Prob. 38ECh. 4.2 - Prob. 39ECh. 4.2 - Prob. 40ECh. 4.2 - Prob. 41ECh. 4.2 - Prob. 42ECh. 4.2 - Prob. 43ECh. 4.2 - Prob. 44ECh. 4.2 - Prob. 45ECh. 4.2 - Prob. 46ECh. 4.2 - Prob. 47ECh. 4.2 - Prob. 48ECh. 4.2 - Prob. 49ECh. 4.2 - Prob. 50ECh. 4.2 - Prob. 51ECh. 4.2 - Prob. 52ECh. 4.2 - Prob. 53ECh. 4.2 - Prob. 54ECh. 4.2 - Prob. 55ECh. 4.2 - Prob. 56ECh. 4.3 - Prob. 57ECh. 4.3 - Prob. 58ECh. 4.3 - Prob. 59ECh. 4.3 - Prob. 60ECh. 4.3 - Prob. 61ECh. 4.3 - Prob. 62ECh. 4.3 - Prob. 63ECh. 4.3 - Prob. 64ECh. 4.3 - Prob. 65ECh. 4.3 - Prob. 66ECh. 4.3 - Prob. 67ECh. 4.3 - Prob. 68ECh. 4.3 - Prob. 69ECh. 4.3 - Prob. 70ECh. 4.3 - Prob. 71ECh. 4.3 - Prob. 72ECh. 4.3 - Prob. 73ECh. 4.3 - Prob. 74ECh. 4.3 - Prob. 75ECh. 4.3 - Prob. 76ECh. 4.3 - Prob. 77ECh. 4.3 - Prob. 78ECh. 4.3 - Prob. 79ECh. 4.3 - Prob. 80ECh. 4.3 - Prob. 81ECh. 4.3 - Prob. 82ECh. 4.4 - Prob. 83ECh. 4.4 - Prob. 84ECh. 4.4 - Prob. 85ECh. 4.4 - Prob. 86ECh. 4.4 - Prob. 87ECh. 4.4 - Prob. 88ECh. 4.4 - Prob. 89ECh. 4.4 - Prob. 90ECh. 4.4 - Prob. 91ECh. 4.4 - Prob. 92ECh. 4.4 - Prob. 93ECh. 4.4 - Prob. 94ECh. 4.4 - Prob. 95ECh. 4.4 - Prob. 96ECh. 4.4 - Prob. 97ECh. 4.4 - Prob. 98ECh. 4.4 - Prob. 99ECh. 4.4 - Prob. 100ECh. 4.4 - Prob. 101ECh. 4.4 - Prob. 102ECh. 4.4 - Prob. 103ECh. 4.4 - Prob. 104ECh. 4.4 - Xr04-105 The number of wins, team payrolls, home...Ch. 4.4 - Prob. 106ECh. 4.4 - Prob. 107ECh. 4.4 - Prob. 108ECh. 4.4 - Prob. 109ECh. 4.4 - Prob. 110ECh. 4.5 - Prob. 111ECh. 4.5 - Prob. 112ECh. 4.5 - Prob. 113ECh. 4.5 - Prob. 114ECh. 4.5 - Prob. 115ECh. 4.5 - Prob. 116ECh. 4.5 - Prob. 117ECh. 4.5 - Prob. 118ECh. 4.5 - Prob. 119ECh. 4.5 - Prob. 120ECh. 4.5 - Prob. 121ECh. 4.5 - Prob. 122ECh. 4.5 - Prob. 123ECh. 4.5 - Prob. 124ECh. 4.5 - Prob. 125ECh. 4.5 - Prob. 126ECh. 4.5 - Prob. 127ECh. 4.5 - Prob. 128ECh. 4.5 - Prob. 129ECh. 4.5 - Prob. 130ECh. 4.5 - Prob. 131ECh. 4.6 - Prob. 132ECh. 4.6 - Prob. 133ECh. 4.6 - Prob. 134ECh. 4.6 - Prob. 135ECh. 4.6 - Prob. 136ECh. 4.6 - Prob. 137ECh. 4.6 - Prob. 138ECh. 4 - Prob. 139CECh. 4 - Prob. 140CECh. 4 - Prob. 141CECh. 4 - Prob. 142CECh. 4 - Prob. 143CECh. 4 - Prob. 144CECh. 4 - Prob. 145CECh. 4 - Prob. 146CECh. 4 - Prob. 147CECh. 4 - Prob. 148CECh. 4 - Prob. 149CECh. 4 - Prob. 150CECh. 4 - Prob. 151CECh. 4 - Prob. 152CECh. 4 - Prob. 153CECh. 4 - Prob. 154CE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Consider the table given below to answer the following question. Year 3 4 5 7 10 Asset value 13.00 14.69 16.60 18.76 20.63 22.70 24.97 26.71 28.58 30.58 Earnings Net investment 1.69 1.91 2.16 2.44 2.68 2.84 3.00 3.07 2.57 2.75 1.69 1.91 2.16 1.88 2.06 2.27 1.75 1.87 2.00 2.14 Free cash flow (FCF) Return on equity (ROE) Asset growth rate Earnings growth rate 0.56 0.62 0.57 1.25 1.20 0.57 0.61 0.13 0.13 0.13 0.13 0.13 0.125 0.12 0.115 0.09 0.09 0.13 0.10 0.10 0.10 0.13 0.13 0.10 0.07 0.07 0.07 0.07 0.13 0.13 0.13 0.06 0.06 0.03 -0.16 0.07 Assuming that competition drives down profitability (on existing assets as well as new investment) to 12.5% in year 6, 12% in year 7, 11.5% in year 8, and 9% in year 9 and all later years. What is the value of the concatenator business? Assume 11% cost of capital. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. Present value $ 35.78 8 millionarrow_forwardConsider the three stocks in the following table. P represents price at time t, and represents shares outstanding at time t. Stock C splits two for one in the last period. A B с P 20 250 80 P₁ 21 85 250 25 85 30 800 800 25 65 800 80 800 40 Rate of return P2 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t=0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) New divisor % Rate of return Q2 b. Calculate the new divisor for the price-weighted index in year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 250 800 1,600 c. Calculate the rate of return for the second period (t=1 to t= 2). (Round your answer to 2 decimal places.) %arrow_forwardCalculate the Herfindahl-Hirshman Index given the following market shares: Company Market Share Visa 60% Mastercard 30% American Express 10%arrow_forward
- The following is the stock table list for four different companies according to the Malaysian Stock Exchange as of February 10t, 2021. Note that all prices stated are in Ringgit Malaysia (RM). Use the table to answer the following parts (a) and (b). 52- VOL NET WEEKS STOCK DIV YLD% PE CLOSE (100S) CHG HI LO APEX HEALTHCARE 4.53 1.73 0.04 1.11 28.52 2.44 3.35 -0.01 BERHAD (AHEALTH) CAREPLUS GROUP 5.83 0.15 0.01 0.23 15.01 379.15 2.22 -0.01 BERHAD (CAREPLS) KPF HEALTHCARE 1.04 0.71 0.02 2.14 24.54 86.24 0.94 -0.01 BERHAD (KPJ) TOP GLOVE CORPORATION BHD (TOPGLOV) 9.56 1.42 0.19 3.00 12.23 1,688.3 6.20 -0.04 (a) Find: i. The closing price of AHEALTH stock for the day before yesterday. . The amount of dividend per share that CAREPLS paid last year. The lowest price that KPJ stock sold for during the past 52 weeks. 111. iv. The highest price that CAREPLS stock sold for during the past year. How many shares of KPJ were traded yesterday? V. The annual earnings per share for last year for…arrow_forwardProblem 07-16 (algo) Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 3,100. Case's share of that market was 20 percent, while Fiat comprised just 14 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase? Based only on this information, is the Justice Department likely to challenge the merger according to the Horizontal Merger Guidelines? No Yes O Possibly - but other factors will be consideredarrow_forwardThe table below shows recent worldwide market shares of producers of inkjet printers: Firm Brother Canon Dell Share of Worldwide Market Sales 4% 16 5 19 41 13 Epson Hewlett-Packard Lexmark Samsung Other 1 The value of the Herfindahl-Hirschman index for the industry is. (Enter your response as a whole number.)arrow_forward
- Using the information for Martin-Tyson Retail Stores presented in the table below, determine the following: 1. Price-earnings ratio. 2. Earnings per share. 3. Lowest price paid for a share of the stock in the last 12 months.arrow_forwardUsing the information for Northern Resorts & Hotels presented in the table below, determine the following: 1.The last price paid for a share of stock on this trading day. 2. Amount of income per share paid to a stockholder in the last 12 months. 3. Percentage of change in the stock's price since the beginning of the year.arrow_forwardTesla Many analysts cite Tesla as the most innovative car company to enter the automobile industry in recent history. The company was founded in 2003 with the vision of being an independent automaker that would build affordable electric cars. Over the next 17 years, it produced five different car models and continues to introduce concepts for additional vehicles. It has also expanded into home battery and solar panel products. In the first half of 2020, 81% of electric vehicles sold were Teslas, and its affordable sedan, the Model 3, is the all-time bestselling electric vehicle ever. Tesla’s cars helped create a new market for electric vehicles. In addition, its cars have technological components that have advanced safety throughout the automobile industry. Its cars can come with self-driving capabilities and advanced safety warnings. Parts of these technologies have been adopted by other car makers. 1.Think about the automobile industry. Explain what type of market it is by answering…arrow_forward
- Discuss the requirements on financial reporting of a company listed in the main market as set forth by Bursa Malaysia.arrow_forwardYou and your friend have opened an account on E-Trade and have each decided to select five similar companies in which to invest. You are diligent in monitoring your selections, tracking prices, current events, and actions the company has taken. Your friend chooses his companies randomly, pays no attention to the financial news, and spends his leisure time focused on everything besides his investments. Explain what might be the performance for each of your portfolios at the end of the year.arrow_forwardThe Herfindahl index for 5 equal firms is 2000 and then a merger occurs between two of the firms and the index grows to___________________________________?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Forecasting: Exponential Smoothing, MSE; Author: Joshua Emmanuel;https://www.youtube.com/watch?v=k_HN0wOKDd0;License: Standard Youtube License