You run a regression for a stock's return on a market index and find the following Excel output:   Multiple R 0.35   R-Square 0.12   Adjusted R-Square 0.02   Standard Error 38.45   Observations 12       Coefficients   Standard Error t-Stat p-Value Intercept 4.05     15.44   0.26 0.80 Market 1.32     0.97   1.36 0.10   The stock is ________ riskier than the typical stock

Q: what is the return of stock a what is the return of stockb what is the standard deviation on stock…

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A: Step 1:a. This is a classic minimum variance portfolio problem. We will use solve in excel.1. Set up…

Q: (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common…

A: Stock AStock BProbabilityReturnProbabilityReturn0.3513%0.15-6%0.3014%0.357%0.3518%0.3516%0.1520%

Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…

A: Covariance measures the directional relationship between the returns of 2 securities.The positive…

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Q: 3. Consider three stocks A, B and C and a market index M with the following prices: Year то T1 T2…

A: Note: This question has several sub-parts. The first three have been answered below

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Q: A stock has a market beta of 0.62 and a standard deviation of 0.27. If the market standard deviation…

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Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…

A: ParticularsStock AStock BBeta0.700.90R-square0.200.15σM22%

Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…

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A: Stock A:    Stock B:

Q: What is the covariance and the correlation coefficient between HD and ML? xx

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A:

Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…

A: Stock A:Beta = 1.1R-square = 0.29Stock B:Beta = 1.2R-square = 0.14σM = 29%

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Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…

A: ParticularsStock AStock BBeta1.201.5R-square0.250.15σM16%

Q: From Previous Question G): >>>What is the beta? Explain with its formula. g) Use the…

A: Calculation of Expected Return, Standard Deviation and Covariance: Excel Spreadsheet:

Q: Forecast Returns, Standard Deviations, and Betas Forecast Return Standard Deviation Beta Low β stock…

A: Expected return for each stock- = Rf+ beta (Rm-Rf) Stock X= 0.05+ 0.8x (0.14-0.05) = 12.20% Stock Y=…

Q: The index model has been estimated from the excess returns for stock A with the following results:…

A: RA12.00%+1.55Rm+eAσM24.00%σ(eA)18.50%

Q: (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common…

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Q: Given the following excess return index model regression results Ra*= -0.059616 + 0.957478Rm* where;…

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