The following table illustrates the regression results from regressingmonthly IBM excess returns on monthly S&P 500 excess returns.Regression StatisticsMultiple RR SquareAdjusted R SquareStandard ErrorObservationsInterceptExcess Market0.5170.268ANOVAO 0.264RegressionResidualTotalO 0.4220.5170.2680.2640.080180.000df1.000178.000179.000Coefficients0.0011.120SSMS0.422 0.4221.153 0.0061.575What is the estimated correlation between excess IBM and marketreturns?F65.085Standard Errort StatP-value0.006 0.2370.8130.139 8.068 0.000Significance F0.000

R squared = 0.268Adjusted R squared = 0.264Standard error = 0.80

The following table illustrates the regression results from regressing monthly IBM excess returns on monthly S&P 500 excess returns. Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total 0.517 0.268 0.264 0.080 180.000 df 1.000 178.000 179.000 SS MS 0.422 0.422 1.153 0.006 1.575 Coefficients Standard Error t Stat F 65.085 P-value Significance F 0.000

The following table illustrates the regression results from regressing monthly IBM excess returns on monthly S&P 500 excess returns. Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total 0.517 0.268 0.264 0.080 180.000 df 1.000 178.000 179.000 SS MS 0.422 0.422 1.153 0.006 1.575 Coefficients Standard Error t Stat F 65.085 P-value Significance F 0.000

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

Section: Chapter Questions

Problem 1PS

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