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Regress the returns on the stock on the returns on the S&P 500. What is the beta of the fund, using the industry model (not subtracting the risk-free rate), i.e., the slope coefficient of the regression?

Regress the returns on the stock on the returns on the S&P 500. What is the beta of the fund, using the industry model (not subtracting the risk-free rate), i.e., the slope coefficient of the regression?

MATLAB: An Introduction with Applications
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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Regress the returns on the stock on the returns on the S&P 500. What is the beta of the fund, using the industry model (not subtracting the risk-free rate), i.e., the slope coefficient of the regression?

Hint: You can estimate beta using regression in Excel; however, it's also possible to get the slope via Excel's LINEST function or SLOPE function. Just copy and paste the table of returns into Excel.

The following table shows rates of return for a mutual fund and the market portfolio (S&P 500). A 1 Year 2 1 3 2 4 3 4 LO 5 6 7 01 5 6 B Fund 14% -13% -6% 5% 14% 14% с Market 13% -14% -7% 28% 8% 4%
Transcribed Image Text:The following table shows rates of return for a mutual fund and the market portfolio (S&P 500). A 1 Year 2 1 3 2 4 3 4 LO 5 6 7 01 5 6 B Fund 14% -13% -6% 5% 14% 14% с Market 13% -14% -7% 28% 8% 4%
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