Consider the regession equation: d6 gb gs(e)e where -the average diference between the monthly return on stock i and the monthy risk tree rate b the beta of stock i s(e)a meanure of the nonsystematic variance of the stocki If you estimated this regression equation and the CAPM was valid, you would expect the estimated coefficient, . has to be Da oqual to the average diference between the monthly retum on the market portolo and the monthly r tee rate Oh equal to the nsk-hren rate of retum. De. None of the options are corect
Consider the regession equation: d6 gb gs(e)e where -the average diference between the monthly return on stock i and the monthy risk tree rate b the beta of stock i s(e)a meanure of the nonsystematic variance of the stocki If you estimated this regression equation and the CAPM was valid, you would expect the estimated coefficient, . has to be Da oqual to the average diference between the monthly retum on the market portolo and the monthly r tee rate Oh equal to the nsk-hren rate of retum. De. None of the options are corect
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.6: Regression And Median-fit Lines
Problem 17HP
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