Asked by Cassie Trucchio on Jun 26, 2024
Verified
You run a regression for a stock's return on a market index and find the following Excel output:
The characteristic line for this stock is Rstock = ________ + ________ Rmarket.
A) .35; .12
B) 4.05; 1.32
C) 15.44; .97
D) .26; 1.36
Characteristic Line
A line generated in a statistical chart that shows the relationship between the returns on a security or portfolio and the returns on the overall market.
Market Index
A statistical measure that tracks the performance of a group of stocks, representing a portion of the overall market.
- Decompose regression outputs associated with stock and financial market returns.
Verified Answer
LF
Lorraine FonsecaJun 29, 2024
Final Answer :
B
Explanation :
Intercept equals 4.05, and slope equals 1.32.
Learning Objectives
- Decompose regression outputs associated with stock and financial market returns.