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Beta, Alpha, Coefficient of determination

Following are ten quarters of return data for Barboo Associates Stock, as well as return data during the same period for a broad stock market index. Using this information, calculate the following statistics for Barboo Associates stock.

I.) Beta
II.) Alpha
III.) Coefficient of determination

Quarter Baraboo Return Market Return

1 3.8% 2.7%
2 5.3% 3.1%
3 -7.2% -4.9%
4 10.1% 9.9%
5 1.0% 2.7%
6 2.5% 1.2%
7 6.4% 3.8%
8 4.8% 4.0%
9 6.0% 5.5%
10 2.2% 2.0%

Solution Summary

Calculates Beta, Alpha, Coefficient of determination for a stock given the return on the stock an market return for 10 quarters.

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