The resulting SML equation for Laternios is given by: Er Laternios + = X (E[rM] - rf)

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
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You run a regression for the Tesla stock return on a market index to estimate the
SML equation and find the following Excel output:
Multiple R
R-Square
Adjusted R-Square
Standard Error
Observations
Intercept
Market
=
0.28
0.25
0.02
40.01
60
13.35 and 0.97
0.8 and 0.1
0.28 and 0.25
0.26 and 1.36
0.2 and 0.75
Coefficients
Standard
Error
t-Stat p-Value
0.2
0.75
The resulting SML equation for Laternios is given by:
Er Laternios]
13.35 0.26 0.80
0.97 1.36 0.10
+ __ × (E[rM] - rf)
Transcribed Image Text:You run a regression for the Tesla stock return on a market index to estimate the SML equation and find the following Excel output: Multiple R R-Square Adjusted R-Square Standard Error Observations Intercept Market = 0.28 0.25 0.02 40.01 60 13.35 and 0.97 0.8 and 0.1 0.28 and 0.25 0.26 and 1.36 0.2 and 0.75 Coefficients Standard Error t-Stat p-Value 0.2 0.75 The resulting SML equation for Laternios is given by: Er Laternios] 13.35 0.26 0.80 0.97 1.36 0.10 + __ × (E[rM] - rf)
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