Question
In: Finance
The table lists the monthly total returns on Dish Network Corp. common stock and the market...
The table lists the monthly total returns on Dish Network Corp. common stock and the market rates of return for a 24-month period. Observation Month Dish rate of return (%) Market rate of return (%) 1 Aug 2014 4.75 4.18 2 Sep 2014 -0.35 -2.11 3 Oct 2014 -1.44 2.74 4 Nov 2014 24.76 2.43 5 Dec 2014 -8.21 -0.01 6 Jan 2015 -3.48 -2.77 7 Feb 2015 6.67 5.78 8 Mar 2015 -6.64 -1.01 9 Apr 2015 -3.43 0.42 10 May 2015 4.63 1.39 11 Jun 2015 -4.35 -1.70 12 Jul 2015 -4.58 1.65 13 Aug 2015 -8.26 -6.00 14 Sep 2015 -1.57 -2.95 15 Oct 2015 7.94 7.86 16 Nov 2015 -0.41 0.56 17 Dec 2015 -8.82 -2.04 18 Jan 2016 -15.58 -5.67 19 Feb 2016 -2.36 -0.02 20 Mar 2016 -1.85 7.03 21 Apr 2016 6.55 0.63 22 May 2016 1.24 1.79 23 Jun 2016 5.01 0.23 24 Jul 2016 1.95 3.97 Estimate beta to two decimal places for Dish Network based on this data. If beta is negative, then include a minus sign. Hint: see Examples 16 and 17 in the lecture. Group of answer choices
Solutions
Expert Solution
| Period | Dish Network Corp. | Market return |
| 1 | 4.75 | 4.18 |
| 2 | -0.35 | -2.11 |
| 3 | -1.44 | 2.74 |
| 4 | 24.76 | 2.43 |
| 5 | -8.21 | -0.01 |
| 6 | -3.48 | -2.77 |
| 7 | 6.67 | 5.78 |
| 8 | -6.64 | -1.01 |
| 9 | -3.43 | 0.42 |
| 10 | 4.69 | 1.39 |
| 11 | -4.35 | -1.7 |
| 12 | -4.58 | 1.65 |
| 13 | -8.26 | -6.00 |
| 14 | -1.57 | -2.95 |
| 15 | 7.94 | 7.86 |
| 16 | -0.41 | 0.56 |
| 17 | -8.82 | -2.04 |
| 18 | -15.58 | -5.67 |
| 19 | -2.36 | -0.02 |
| 20 | -1.85 | 7.03 |
| 21 | 6.55 | 0.63 |
| 22 | 1.24 | 1.79 |
| 23 | 5.01 | 0.23 |
| 24 | 1.95 | 3.97 |
formula along with cells
jeff jeffy answered 2 years agoRelated Solutions
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Period
Portfolio A
Portfolio B
Factor 1
Factor 2
Factor 3
1
1.00
%
0.00
%
0.02
%
-0.99
%
-1.73
%
2
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6.61
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The following table lists returns on the market portfolio and on Microsoft, each year from 1989...
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Year
Microsoft (%)
Market Portfolio (%)
1989
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31.49
1990
-47.37
-3.17
1991
31
30.57
1992
132.44
7.58
1993
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10.36
1994
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2.55
1995
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1996
0.00
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1997
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1998
36.19
28.32
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Assume that stock market returns have the market index as a common factor, and that all...
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common factor, and that all stocks in the economy have a beta of
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1.9 on the market index. Firm-specific returns all have a standard
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RHR
RM
Probability
(RHR, RM)
0.08
0.06
0.10
0.10
0.06
0.20
0.10
0.07
0.25
0.12
0.07
0.10
0.12
0.08
0.15
0.14
0.08
0.20
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RHR and the probabilities that correspond to those values. Compute
the expected value, variance, and standard deviation for
RHR.
b. List the possible values for RM and the...
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