A linear regression of the return on NVIDIA on the return of S&P 500 gives you thefollowing result:RNVIDIA = 0.03 + 1.45*RS&P500 + errorNVIDIA.Suppose that the standard deviation of the S&P 500 return is 0.20 and the standarddeviation of the error term (errorNVIDIA) is 0.10.What fraction of the total variance of NVIDIA is systematic?

A linear regression of the return on NVIDIA on the return of S&P 500 gives you thefollowing result:RNVIDIA = 0.03 + 1.45*RS&P500 + errorNVIDIA.Suppose that the standard deviation of the S&P 500 return is 0.20 and the standarddeviation of the error term (errorNVIDIA) is 0.10.What fraction of the total variance of NVIDIA is systematic?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter8: Time Series Analysis And_forecasting

Section: Chapter Questions

Problem 18P: Consider the following time series: Construct a time series plot. What type of pattern exists in...

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