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The table above represents the regression results of Stock A's monthly excess returns versus the S&P 500 monthly excess returns over a 120-month period. Based on the results above, what is the expected monthly return for Stock A when the monthly return for the S&P 500 is 0.97% and the risk-free rate is 0.19%?

The table above represents the regression results of Stock A's monthly excess returns versus the S&P 500 monthly excess returns over a 120-month period. Based on the results above, what is the expected monthly return for Stock A when the monthly return for the S&P 500 is 0.97% and the risk-free rate is 0.19%?

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
Section: Chapter Questions
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Ee 57.

Regression Statistics R (correlations) R Square Adj. R Square Observations Intercept S&P 500 0.4327 0.2138 0.2053 120 Coefficients p-value LCL UCL 0.382 0.0097 0.1028 1.3684 0.0000 0.7869 1.6025 1.067 LCL - Lower confidence interval (95%) UCL - Upper confidence interval (95%) The table above represents the regression results of Stock A's monthly excess returns versus the S&P 500 monthly excess returns over a 120-month period. Based on the results above, what is the expected monthly return for Stock A when the monthly return for the S&P 500 is 0.97% and the risk-free rate is 0.19%?
Transcribed Image Text:Regression Statistics R (correlations) R Square Adj. R Square Observations Intercept S&P 500 0.4327 0.2138 0.2053 120 Coefficients p-value LCL UCL 0.382 0.0097 0.1028 1.3684 0.0000 0.7869 1.6025 1.067 LCL - Lower confidence interval (95%) UCL - Upper confidence interval (95%) The table above represents the regression results of Stock A's monthly excess returns versus the S&P 500 monthly excess returns over a 120-month period. Based on the results above, what is the expected monthly return for Stock A when the monthly return for the S&P 500 is 0.97% and the risk-free rate is 0.19%?
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