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The following table shows rates of return for a mutual fund and the market portfolio (S&P 500). B с Fund Market 14% 13% -16% -14% -6% -4% 5% 28% 14% 8% 5% 7% 1 2 3 4 5 6 7 A Year 1 2 3 4 5 6 Part 1 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?

The following table shows rates of return for a mutual fund and the market portfolio (S&P 500). B с Fund Market 14% 13% -16% -14% -6% -4% 5% 28% 14% 8% 5% 7% 1 2 3 4 5 6 7 A Year 1 2 3 4 5 6 Part 1 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?

Essentials Of Investments
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
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Intro The following table shows rates of return for a mutual fund and the market portfolio (S&P 500). A B с 1 Year Fund Market 2 1 14% 13% 3 2 -16% -14% 4 -6% -4% 5 5% 28% 6 14% 8% 7 5% 7% Part 1 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? 2+ decimals Submit م اما اما 3 4 5 6
Transcribed Image Text:Intro The following table shows rates of return for a mutual fund and the market portfolio (S&P 500). A B с 1 Year Fund Market 2 1 14% 13% 3 2 -16% -14% 4 -6% -4% 5 5% 28% 6 14% 8% 7 5% 7% Part 1 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? 2+ decimals Submit م اما اما 3 4 5 6
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