Apple excess return on two measures

Reference no: EM131009408

Apple stock Fit the multiple regression of the monthly Apple Excess Return on two measures of the overall market, the return on the whole market (Market Excess Return) and the S&P 500 index (SP500 Excess Return). Use only the 72 months during 2006-2011.

(a) Does the two-variable model explain statistically significant variation in Apple Excess Return? Explain.

(b) What is the relationship between the overall F-statistic and the partial F-statistic that tests H0: b1 = b2 = 0?

(c) Is the t-statistic that tests H0: b1 = 0 in the multiple regression statistically significant? That tests H0: b2 = 0?

(d) How can you reconcile the answers to (a) and (c).

Reference no: EM131009408

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