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minitab project 7

minitab project 7 - 2 r 2 = 5.8 8 For every 1 increase in...

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BUAD 310 Minitab Project 7 1. To find out whether if investment in AAPL is more or less risky than investment in the S&P500 2. The target population is the annual closing prices of AAPL for past, current, and future 3. The sample is not likely to be representative because you cant have future prices in the sample 4. The mean % return of AAPL for a year in which the S&P500 is flat is 37.1 5. 37.1 + 1.25(10) = 49.6 6. Mean of AAPL is 48.8 % 7. r 2 If I use the best line instead of the base line to estimate AAPL’s return, I can only reduce my uncertainty by r
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Unformatted text preview: 2 %. r 2 = 5.8% 8. For every 1 % increase in the S&P, I expect 1.25% increase in Apple’s stock return 9. 1.)SCV (sample coefficient of variation) higher number is more risky 2.) compare to Beta (greater than 1, risky) only useful if AAPL’s % return is linearly related to S&P500’s % return Beta of AAPL is bigger so it is more risky. SCV also indicates that AAPL is riskier with an SCV of 170.83 compared to SCV for S&P500 which is 170.70 10. The scatter plot indicates that Beta is unreliable...
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