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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What is the test statistics and critical values. I got 4.20 for the test statistic, but it says its incorrect.
Returns Year X Y 1 8% 12% 2 21 27 3 - 27 32 4 5 11 18 18 24 Using the returns shown above, calculate the average returns, variances, and standard deviations for X and Y: (Do not round intermediate calculations. Round the final percent answers to 2 decimal places. The variances to 5 decimal places.) Average returns Variances Standard deviations % %
1
Calculate the standard deviation of this scenario Outcome 1: Recession. Probability = 40% . Return = 7.38%. Outcome 1: Recovery. Probability = 60%. Return = 17.27 %. Answer in % terms w/o % sign and to 4 decimal places (1.2345)
Use the following returns for X and Y. Returns Year 1 22.8% 29.4% - 17.8 10.8 4.8 31.4 4 21.6 - 16.6 5.8 35.4 a. Calculate the average returns for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the variances for X and Y. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) c. Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Y a. Average return % % b. Variance с. Standard deviation %
Year INM +5 3 4 Returns 14% 28 9 10 Y 18% 29 10 -26 20 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16, and round the variance answers to 5 decimal places, e.g., 16161.) Average returns Variances Standard deviations X 8.00 % 17.90 % Y 10,20 % 21.34 %
SoCal Edison reported the following data for operating revenue and net income for 2001 through 2005. Year Operating Revenue (Millions), X Net Income (Millions), Y 2001 2270 96.9 2002 1482 89.1 2003 2138 103.9 2004 2260 81.6 2005 2600 78.1 Using Excel, determine the least-squares regression line and interpret its slope. Estimate the net income if the operating revenue figure is $2500 million.
Use the data shown in the following table: K a. Compute the average return for each of the assets from 1929 to 1940 (the Great Depression). b. Compute the variance and standard deviation for each of the assets from 1929 to 1940. c. Which asset was the riskiest during the Great Depression? How does that fit with your intuition? Note: For all your answers type decimal equivalents. Data table Year 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 S&P 500 -0.08906 -0.25256 - 0.43861 -0.08854 0.52880 -0.02341 0.47221 0.32796 -0.35258 0.33204 -0.00914 - 0.10078 Small Stocks - 0.43081 -0.44698 -0.54676 -0.00471 2.16138 0.57195 0.69112 0.70023 - 0.56131 0.08928 0.04327 -0.28063 Corp. Bonds 0.04320 0.06343 -0.02380 0.12199 0.05255 0.09728 0.06860 0.06219 0.02546 0.04357 0.04247 0.04512 World Portfolio -0.07692 -0.22574 -0.39305 0.03030 0.66449 0.02552 0.22782 0.19283 -0.16950 0.05614 -0.01441 0.03528 Treasury Bills 0.04471 0.02266 0.01153 0.00882 0.00516 0.00265 0.00171 0.00173…
Use the following returns for X and Y. Year 1 2 3 4 5 Returns X 22.1% -17.1 10.1 20.2 5.1 Y 27.3% -4.1 29.3 -15.2 33.3 a. Calculate the average returns for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the variances for X and Y. Note: Do not round intermediate calculations and round your answers to 6 decimal places, e.g., .161616. c. Calculate the standard deviations for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. X Answer is complete but not entirely correct. X 8.06 a. Average return b. Variance c. Standard deviation 136.454400 % 11.67 X % Y 14.04 377.286400 x % 19.42%
Use the following returns for X and Y. Returns Year x y 1 21.8% 26.4% 2 -16.8 -3.8 3 9.8 28.4 4 19.6 -14.6 5 4.8 32.4 a. Calculate the average returns for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the variances for X and Y. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) c. Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
q8- When visualising the distribution of a variable using a histogram, if only the right tail has outliers, the data distribution is: a. Right-skewed b. Normal c. Left-skewed d. Uniform
Ee 184.

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