On a graph showing the firm's common stock returns on the Y-axis, and market returns on the X-axis, the slope of the regression line represents the firm's:
A) range of NPV's
B) standard deviation
C) diversifiable risk
D) beta
E) diversifiable risk and beta
Solution Preview
On a graph showing the firm's common stock returns on the Y-axis, and market returns on the X-axis, the slope of the regression line ...
Solution Summary
Response discusses the slope of the regression line
... 30.0 28 37.0 32 47.0 17 30.5 24 32.5 31 39.0 40 51.5 38 40.0 a. Develop the estimated regression line. b. At ? = 0.05, test for the significance of the slope. ...
...Slope=Sxy/SSx=943713.6/1369258=0.689215 Bo=mean of y-slope*mean of x=308.5778-0.689215* 347.8111=68.86117 Therefore, the equation for the regression line is y ...
