find out Microsoft’s alpha, beta, and the fraction of its variance attributed to market risk.

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter1: Fundamental Concepts Of Algebra
Section1.4: Fractional Expressions
Problem 66E
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find out Microsoft’s alpha, beta, and the fraction of its variance attributed to market risk.

r_f
r_M
R_M
r_IBM
R_IBM
r_MSFT
R_MSFT
0.0048
0.0449
-0.0271
0.0277
0.0048
0.0517
0.0554
0.0650
0.0049
-0.0166
-0.0840
-0.0484
0.0534
0.0020
0.0051
0.0110
-0.0354
0.0056
0.0004
0.0642
0.0056
0.0515
0.1322
0.1552
0.0059
-0.0073
-0.0128
-0.1119
0.0062
-0.0280
-0.1046
-0.1597
0.0062
0.0372
0.0348
0.0450
0.0063
0.0176
0.0628
-0.0622
0.0067
-0.0164
-0.0247
-0.0357
0.0069
0.0211
0.0285
0.1270
0.0072
0.0661
0.0718
0.1197
0.0074
-0.0165
-0.0614
-0.0021
0.0076
0.0215
-0.1019
-0.1618
0.0072
0.0482
0.0447
0.1203
0.0074
0.0393
-0.0278
0.0828
0.0068
-0.0049
0.0205
-0.1240
0.0066
0.0771
0.0279
0.0330
0.0067
0.0221
0.0290
0.0731
0.0067
-0.0015
-0.0672
0.1660
0.0066
-0.0293
-0.0824
0.1934
0.0065
0.0178
-0.0141
0.0642
0.0064
0.0183
-0.0359
0.0000
0.0066
-0.0701
0.0478
0.0632
0.0066
0.0149
0.0655
0.0676
0.0067
0.0241
0.0217
0.1215
0.0066
-0.0283
0.0271
0.0474
0.0066
0.0889
0.1120
0.2586
Transcribed Image Text:r_f r_M R_M r_IBM R_IBM r_MSFT R_MSFT 0.0048 0.0449 -0.0271 0.0277 0.0048 0.0517 0.0554 0.0650 0.0049 -0.0166 -0.0840 -0.0484 0.0534 0.0020 0.0051 0.0110 -0.0354 0.0056 0.0004 0.0642 0.0056 0.0515 0.1322 0.1552 0.0059 -0.0073 -0.0128 -0.1119 0.0062 -0.0280 -0.1046 -0.1597 0.0062 0.0372 0.0348 0.0450 0.0063 0.0176 0.0628 -0.0622 0.0067 -0.0164 -0.0247 -0.0357 0.0069 0.0211 0.0285 0.1270 0.0072 0.0661 0.0718 0.1197 0.0074 -0.0165 -0.0614 -0.0021 0.0076 0.0215 -0.1019 -0.1618 0.0072 0.0482 0.0447 0.1203 0.0074 0.0393 -0.0278 0.0828 0.0068 -0.0049 0.0205 -0.1240 0.0066 0.0771 0.0279 0.0330 0.0067 0.0221 0.0290 0.0731 0.0067 -0.0015 -0.0672 0.1660 0.0066 -0.0293 -0.0824 0.1934 0.0065 0.0178 -0.0141 0.0642 0.0064 0.0183 -0.0359 0.0000 0.0066 -0.0701 0.0478 0.0632 0.0066 0.0149 0.0655 0.0676 0.0067 0.0241 0.0217 0.1215 0.0066 -0.0283 0.0271 0.0474 0.0066 0.0889 0.1120 0.2586
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