a. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Do not round intermediate calculations. Round your answer to two decimal places. Beta = b. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stock X and the NYSE. Do not round intermediate calculations. Round your answers to two decimal places.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Etivity: Characteristic Line and Security Market Line
Year
1
2
34567
HISTORICAL RATES OF RETURN
Stock X
NYSE
- 26.5%
Beta =
37.2
23.8
- 7.2
6.6
20.5
30.6
- 24.0%
24.0
19.5
4.0
10.1
17.7
17.5
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions
below.
X
Open spreadsheet
a. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Do not round intermediate calculations.
Round your answer to two decimal places.
X
b. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for
both Stock X and the NYSE. Do not round intermediate calculations. Round your answers to two decimal places.
Next
Transcribed Image Text:Etivity: Characteristic Line and Security Market Line Year 1 2 34567 HISTORICAL RATES OF RETURN Stock X NYSE - 26.5% Beta = 37.2 23.8 - 7.2 6.6 20.5 30.6 - 24.0% 24.0 19.5 4.0 10.1 17.7 17.5 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Do not round intermediate calculations. Round your answer to two decimal places. X b. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stock X and the NYSE. Do not round intermediate calculations. Round your answers to two decimal places. Next
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