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1.
This report is used to analyzing the summary statistics for Nike Incorporation
which the market returns as benchmarks of market performance gives the return
on the market. We use the CRSP beta coefficient to predict our company perform
relative to the market. By using SHAZAM to analyze the data, it reveals the
estimated beta coefficient for the CAPM model is approximated to 1.17 for Nike
Inc. The slope coefficient is referred to as the beta coefficient. From the data, it
suggests that our company perform relative to market is an aggressive stock (high
risk) because the beta exceeds one. In other word, our company produces a return
that is more volatile than the market value.
2.
Finance theory states that the interceptor parameter of the estimate should be zero.
In this analysis, the estimated intercept is 0.00731. Testing for the null
hypothesis of a zero intercept against the alternative hypothesis of the intercept
not being zero with a test statistic of 0.820 and result in a pvalue of 0.414. This
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This note was uploaded on 11/29/2010 for the course ECONOMICS 300400 taught by Professor Varies during the Spring '10 term at Cornell University (Engineering School).
 Spring '10
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