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
Related questions
Question
![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)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed1696c1-0b5f-488c-b124-c73831293080%2F7d01b950-c72c-4ab7-92f6-9e32e0629120%2Ftg5z8vd_processed.png&w=3840&q=75)
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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