User Account

All Pages

Measures the deviation from the best fitting line

Assignment Help Basic Statistics
Reference no: EM132157786

Consider the following linear regression model:

Ri+Rf=ai+bi(Rmkt-Rf)+ei

The αi in the regression

a measures the deviation from the best fitting line and is zero on average.

b measures the sensitivity of the security to market risk.

c measures the historical performance of the security relative to the expected return predicted by the SML.

d measures the diversifiable risk in returns.

Reference no: EM132157786

Questions Cloud

Corporate bond default risk premium : What is the 10 year corporate bond's default risk premium if the risk free rate is 1%?
Show an understanding of the civil liabilities of justice : CJ499: The perpetrator stole her wallet and was holding it when he/she fled the scene, which was only a minute or two earlier.
What is not considered unified command feature : According to the FEMA Unit 6 Unified Command training document, what is notconsidered a Unified Command feature:
What is the final single payment : A company buys a machine for $12,000, which it agrees to pay for in five equal annual payments, beginning one year after the date of purchase, at an annual.
Measures the deviation from the best fitting line : Consider the following linear regression model:
What is the amount of the final payment : A $150 bicycle was purchased on December 1 with a $15 down payment. The balance is to be paid at the rate of $10 at the end of each month.
How much would you expect to pay for this stock : If Tesla's cost of equity is 4.9%, how much would you expect to pay for this stock?
Good decision of marketing concepts for his new business : Suggest him with good decision of marketing concepts for his new business.
What uniform annual investment will he have : A man wants to help provide a college education for his young daughter. He can afford to invest $600/yr for the next 4 years, beginning on the girl's 4th.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Proportion of applicants that fail the test

As a condition of employment, Fashion Industries applicants must pass a drug test. Of the last 220 applicants 14 failed the test. Develop a 99 percent confidence interval for the proportion of applicants that fail the test.

  Analysis of variance for determining the names

In choosing a name for a compact disk player, NAMELAB is considering four names and uses analysis of variance for determining whether all four names.

  Formula for the probability curve

a. Write the formula for the probability curve of x. b. Graph the probability curve of x.

  Credit default swap on argentina

What will be the yield on selling Argentina short to buy U.S 10 year Treasury and selling, 10 year credit default swap on Argentina?

  Why is the standard deviation so large

Fire! An insurance company estimates that it should make an annual profit of $150 on each homeowner s policy written, with a standard deviation of $6000.

  Evaluate capability of the critical cutting operation

The plant manager wants to evaluate the capability of a critical cutting operation that he suspects might be the source of the gap problem. The nominal specification for this cutting operation is 25.500 inches.

  Compute population mean size of quagga mussels

Is there any evidence to suggest that the population mean size of quagga mussels is larger in Lake Texoma than in Lake Mead?

  Detemine the probability mass function for x let the random

detemine the probability mass function for x. let the random variable x be equally to assume any of the values 18 14 or

  Transform the raw score for the independent variable

a. Transform the raw score for the independent variable to a z score. b. Calculate the predicted z score for the dependent variable.

  Percentage of people who were elite soccer players

Risks of playing soccer (1.1) A study in Sweden looked at former elite soccer players, people who had played soccer but not at the elite level.

  Find the mean of the sampling distribution.

Find probability that the mean of the sample is less than $445. Place your answer, rounded to 4 decimal places, in the blank.

  Corresponding probability rounded to four decimals

With reference to Exercise 71, what can we assert about the amount of time it takes a person to be served at the given restaurant if we use Chebyshev's theorem with k = 1.5? What is the corresponding probability rounded to four decimals?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd