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Beta using regression analysis

Think about the risks inherent in your Ficticious Company and how to quantify these risks. Download the data provided and calculate the measure of risk for this company (defined as Beta in the Capital Asset Pricing Model - CAPM) and explain why this calculation is a measure of risk. Discuss when this type of calculation is appro

Sourcing Data for Forecasting Model

I am working on a forecasting model and am struggling to source time-series data on anything except consumer expenditure (which cannot be used). I require an intersting dependent variable sourced from a respectable website (ie - UK Office of National Statistics, etc) as well as 2-4 independent variables sourced from sites whi

Prove Math (Without Regression as a Proof)

I can prove this problem using regression, but I don't have an equation for it. Please help, thanks! a.) Suppose you multiply all X1 values by 2 in an equation with one independent variable (X1) and a constant. What will be the effect of this rescaling, if any, on the coefficients (SYMBOL1 and SYMBOL2) and their standard erro

Interpret Models

I need help with this problem that was given in class, I want to say Model II is a better model because it has a better "perfect fit" but I don't think that is the only reason, please help.

Naming this Problem

I need help with this problem, I want to say that it deals with multicollinearity. Please help me, thank you.

Dummy Variable Analysis

Salary and Gender - Testing for Discrimination The starting salary (Y) is related to years of education (X), previous work experience (E) and hiring time (T) for 93 employees of a bank. Suppose that you have been hired by a government agency to investigate whether there has been any salary discrimination on the basis of gender

Multiple Choice Questions-Review

1. As an objective, the maximization of profits ignores A. the timing of cash flows B. the time value of money concept C. the riskiness of cash flows. D. All of the above. 2. Which of the following is the best example of "how should goods and services be produced"? A. the production of a new manufacturing facili


I must construct a graph showing the relationship between two variables, X & Y x: 0 1 2 3 4 5 6 7 ----------------------- y: 50 39 29 20 12 5 0 In my graph I must do the following: 1.Determine whether the relationship is negative or positive 2.I must calculate the slope of the relationship between x & y when x equa

Relationship between gross income and tax paid

The gross income and tax paid by a cross-section of 30 companies in 1988 and 1989 is given in the file tax.xls (a) Use these data to estimate the relationship for each of the years 1988 and 1989. TAXt= à?1 + à?2 incomet + et (b) Give brief interpretations of the two estimates of à?2 (c) Give brief interpretation

Develop Regression Model

The first file is the 2 problems; the second file is the data for the first problem; and the third is the data for the second problem. Problems must be completed in SAS, or STATA.

Three-Variable Regression overview

7.9 A three-variable regression gave the following results {see attachment}. (a) What is the sample size? (b) What is the value of the RSS? (c) What are the d.f of the ESS and RSS? ... *Please see attachment for complete list of questions (including 7.12 and 7.15)

Problems are in attachments - Attachments Fixed!

Please only do 5.10, 5.14, 5.16 for 5.10 please use this adjusted data for the years of 1984, 1985, and 1986 1984: 89 114.5 1985: 95 120 1986: 104 170 the other years will use the original data

Case Study on Capital Asset Pricing Model: Beta Management Company

Please see the two attachments - one outlines the questions and the other is the case study (Beta Management Company). 1. Compute the standard deviation of the stock returns of California REIT and Brown Group during the past 2 years. 2. Suppose that Beta's position had been 99% of equity funds invested in the index fund,


(Y (sub (i)))= B (sub 0) + B(sub 1) X(sub i) + B(sub 2) D(sub2i) + B(sub 3) D(sub 3i) + u(sub i) where: Y= annual earnings of MBA graduates X= years of service D(sub 2)= 1 if Harvard MBA =0 otherwise D(sub3)= 1 Wharton MBA = 0 otherwise a. What are the expected signs of the various coefficients?why?

Assume that the quarterly supply & demand functions for DVD players...

3. Assume that the quarterly supply & demand functions for DVD players are: Qd= 340-6p and Qs=100+2p (a) What is the equilibrium price for DVD players (b) If a price ceiling (legal maximum price) of $28.50 was established would this lead to a shortage, surplus, or no change? What would that shortage/surplus be? 4. On the Bu

Firm's Product Elastic

1. The Johnson Robot Company's making officials report to the company's chief executive officer that the demand curve for the company's robots in 2001 is P=3,000-40Q, where P is the price of a robot, and Q is the number sold per month. a. Derive the marginal revenue curve for the firm. b. At what price is the demand for the fi

Regression Formula

Gold Trackers monitors the price of precious metals and has daily data on prices and sales of gold for the past several years. One of their new MBA financial wizards has estimated the following relationship for gold sales in the past year of trading (250 observations): Q = 4000 ? 0.01P + 1.5I ? 1.25X + 2.0S R? = 0.96 (85


5.9.) To find out if there is any relationship between teacher's pay and per pupil expenditure in public schools, the following model was suggested: Payi=β1+ β2 Spendi +ui, where Pay stands for teacher's salary and Spend stands for per pupil expenditure. a.) Plot the data and eyeball a regression line. b.) Sup


Help is given with coefficient of correlation, regression, etc.

Regression Analysis - CAPM

This needs to be done in Excel. The CAPM states that the excess return on a stock is proportional to the excess return on the market. This implies: X stock = beta*(X market) Where X is the excess return = return- (return on risk free asset). One criticism of the CAPM regression we ran in class is that it excludes rel


Problem 7.6 Optimal Input Mix. The First National Bank received 3,000 inquiries following the latest advertisement describing its 30-month IRA accounts in the Boston World, a local newspaper. The most recent ad in a similar advertising campaign in Massachusetts Business, a regional business magazine, generated 1,000 inquiries. E