Assignment 2 - 1. This report is used to analyzing the...

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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 p-value of 0.414. This
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This note was uploaded on 11/29/2010 for the course ECONOMICS 300-400 taught by Professor Varies during the Spring '10 term at Cornell University (Engineering School).

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Assignment 2 - 1. This report is used to analyzing the...

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