Capital Asset Pricing Model Assignment | Homework For You
Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.6084 0.3701 0.3659 2.7250 151 ANOVA Significance F 0.0000 df SS MS Regression Residual 87.5516 1.0000 650.1058 650.1058 149.0000 1106.3843 7.4254 Total 150.0000 1756.4902 Standard Lower 95% t Stat P-value Coefficients Error -0.4134 0.9030 0.1221 0.0272 0.2230 Intercept X Variable 1 0.9199 0.0000 9.3569 1.1662 0.1246
The above linear regression output was generated by estimating the parameters of the single index model for Apple (AAPL).
b. Assuming that the risk-free rate is 3 percent and the market risk premium is 6.5 percent, what return does the capital asset pricing model (CAPM) predict for Apple? (5 pts). Get Finance homework help today