find out Microsoft’s alpha, beta, and the fraction of its variance attributed to market risk. ### Financial Data TableThis table presents a set of financial data, possibly representing returns. The columns are labeled as follows:- **r_f**: Represents the risk-free rate or return.- **r_M**: Market return or the return of a market index.- **R_M**: Excess market return. This could be the market return minus the risk-free rate. It is highlighted in red, indicating its significance.- **r_IBM**: Return of IBM's stock.- **R_IBM**: Excess return of IBM's stock. This could be IBM’s stock return minus the risk-free rate. It is highlighted in red.- **r_MSFT**: Return of MSFT's stock.- **R_MSFT**: Excess return of MSFT's stock. Similar to IBM, this is highlighted in red and could denote the MSFT stock return minus the risk-free rate.### Observations- Each column contains numerical values, presumably short-term returns, possibly daily or weekly.- The data presents positive and negative values, reflecting returns that fluctuate over time.- The highlighted columns (R_M, R_IBM, R_MSFT) might be used to assess how individual stocks and the market as a whole perform above or below the risk-free rate.### PurposeThis table can be used for educational purposes to:- Understand the calculation of excess returns.- Analyze and interpret financial returns data.- Compare between market, individual stocks, and excess returns to assess performance.### Applications- Suitable for finance-related courses focusing on investment and risk assessment.- Useful in quantitative analysis of financial markets.- Can serve as a reference for case studies on stock performance and risk measurement.

To find the required alpha and beta values, we need to fit a regression model between Microsoft's…

Answered: find out Microsoft’s alpha, beta, and…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 51 and a standard deviation of 15 . The customers with scores in the bottom 10% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 50.5 and a standard deviation of 16. The customers with scores in the bottom 5% are described as "risk averse. What is the questionnaire score that separates customers who are considered risk averse from those who ar not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place. U Continue X S Submit Terms of Use | Privacy Center
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 50 and a standard deviation of 14. The customers with scores in the bottom 15% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.
Suppose the correlation between height and weight for adults is +0.40.What proportion (or percent) of the variability in weight can be explained by the relationship with height?
Professor Hayashi has implemented a new book for his Fall 2013 statistics course. He wants to see if the new book has an effect on the exam average for Exam 3. He knows that the Exam 3 mean for all students who have taken his statistic course over the past 10 years is 77.2. He collects some data from a sample of 9 students and finds that the Exam 3 mean for his Fall 2013 statistics students is 81.7 with a variance of 32.49.Measure effect size using percentage of variance
A statistical program is recommended. A company provides maintenance service for water-filtration systems throughout southern Florida. Customers contact the company with requests for maintenance service on their water-filtration systems. To estimate the service time and the service cost, the company's managers want to predict the repair time necessary for each maintenance request. Hence, repair time in hours is the dependent variable. Repair time is believed to be related to three factors, the number of months since the last maintenance service, the type of repair problem (mechanical or electrical), and the repairperson who performed the service. Data for a sample of 10 service calls are reported in the table below. ŷ = Repair Time in Hours 2.9 3.0 ŷ = 4.8 1.8 2.4 4.9 4.7 4.8 4.4 4.5 Months Since Last Service 2 6 8 3 2 7 9 8 4 6 Type of Repair Electrical Mechanical Electrical Mechanical Electrical Electrical Mechanical Mechanical Electrical Electrical Repairperson Dave Newton Dave…
In your own words, explain three differences between correlation and regression analysis
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 49 and a standard deviation of 16 . The customers with scores in the bottom 15% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.
7.Why is the strength of the correlation between Y and X important in regression analysis?

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