Based on five years of monthly data, you derive the following information for the companies listed: Company a (Intercept) Intel 0.67 0.24 11.00 % Ford 0.13 13.60 0.20 Anheuser Busch 0.16 6.40 0.69 Merck 0.06 10.20 0.60 SAP 500 0.00 4.50 1.00 a. Compute the beta coefficient for each stock. Do not round intermediate calculations. Round your answers to three decimal places. Intel: 5.091 X Ford: 0.538 X Anheuser Busch: 2 X Merck:

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter13: Direct Foreign Investment
Section: Chapter Questions
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Based on five years of monthly data, you derive the following information for the companies listed:
Company
a (Intercept)
Intel
0.24
11.00 %
0.67
Ford
0.13
13.60
0.20
Anheuser Busch
0.16
6.40
0.69
Merck
0.06
10.20
0.60
SAP S00
0.00
4.50
1.00
a. Compute the beta coefficient for each stock. Do not round intermediate calculations. Round your answers to three decimal places.
Entel:
5.091 X
Ford:
0.538 X
Anheuser Busch:
2 X
Merck:
2 X
Transcribed Image Text:Based on five years of monthly data, you derive the following information for the companies listed: Company a (Intercept) Intel 0.24 11.00 % 0.67 Ford 0.13 13.60 0.20 Anheuser Busch 0.16 6.40 0.69 Merck 0.06 10.20 0.60 SAP S00 0.00 4.50 1.00 a. Compute the beta coefficient for each stock. Do not round intermediate calculations. Round your answers to three decimal places. Entel: 5.091 X Ford: 0.538 X Anheuser Busch: 2 X Merck: 2 X
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