Question

In: Statistics and Probability

Suppose that some data have been collected on the returns on a portfolio i and on...

Suppose that some data have been collected on the returns on a portfolio i and on the excess returns on a market index as shown in the following table. What is the OLS estimator for βi ?

year	Portfolio return	Market return
2015	2.8	1.5
2016	3.9	4.3
2017	4.6	5.6
2018	1.6	2.1

A.

0.51

B.

0.60

C.

0.32

D.

1.23

Expert Solution

Answer:

Given that:

Suppose that some data have been collected on the returns on a portfolio i and on the excess returns on a market index as shown in the following table

Year	Portfolio return	Market return
2015	2.8	1.5
2016	3.9	4.3
2017	4.6	5.6
2018	1.6	2.1


1.5	2.8	-1.875	-0.425	3.515625	0.180625	0.796875
4.3	3.9	0.925	0.675	0.855625	0.455625	0.624375
5.6	4.6	2.225	1.375	4.950625	1.890625	3.059375
2.1	1.6	-1.275	-1.625	1.625625	2.640625	2.071875
13.5	12.9			10.9475	5.1675	6.5525

Option (B) is correct answer

orchestra answered 1 year ago

You have collected the following data on the returns of George Aviation (GA) and Aw Under...

You have collected the following data on the returns of George Aviation (GA) and Aw Under Bins Suction (AUB) over the last 10 years: Year GA AUB 1 19% 3% 2 14% 7% 3 18% -2% 4 13% 5% 5 12% 8% 6 17% 2% 7 16% -3% 8 10% 4% 9 11% 1% 10 20% 0% Given this information, find the optimal weights of a portfolio that consists of these two securities assuming a minimum acceptable return of 2%....

HOW DO I FIND THEORETICAL DISTRIBUTION if I have information from my collected data?

The following data for the dependent variable, y, and the independent variable, x, have been collected...

The following data for the dependent variable, y, and the independent variable, x, have been collected using simple random sampling: X Y 10 120 14 130 16 170 12 150 20 200 18 180 16 190 14 150 16 160 18 200 Construct a scatter plot for these data. Based on the scatter plot, how would you describe the relationship between the two variables? Compute the correlation coefficient.

A random sample of workers have been surveyed and data collected on how long it takes...

A random sample of workers have been surveyed and data collected on how long it takes them to travel to work. The data are in this file. Compute a 99% confidence interval for the expected time taken to travel to work. Show all your working and state any assumptions you need to make in order for your confidence interval to be valid. Interpret the confidence interval x 46.13229 43.06446 42.52708 42.12789 44.92402 34.43817 41.85524 44.2512 50.86619 34.34349 50.98036

I have collected about 200 samples worth of data to determine whether students that are not...

I have collected about 200 samples worth of data to determine whether students that are not full time, full time being defined as anyone with 12 or more units, have a higher GPA than students who are full time. For this case our variances are not equal to each other and our samples are independent of each other. How would you set up the hypothesis test for this case? I originally have it set up like this but not sure...

data=(1,7,3,4,5,6,2,8,9,10,11,12,13,14,15,16,17,18,19,20) Suppose your dataset is a sample collected from some population with variance = 10. Use...

data=(1,7,3,4,5,6,2,8,9,10,11,12,13,14,15,16,17,18,19,20) Suppose your dataset is a sample collected from some population with variance = 10. Use R to solve the problems (b) (2pts) Determine a (96)% confidence interval for the population mean. (d) (3pts) Conduct a (92)% confidence level hypothesis test to test if the population mean is larger than 5 using Pvalue. (g) (2pts) Determine the probability of Type II Error for the test in (d) if the population mean is actually 10.

Let's say you have collected data from a large sample of participants on some variable that...

Let's say you have collected data from a large sample of participants on some variable that you think is normally distributed. In this case use IQ scores. Describe the variable and state whether the scale of measurement is nominal, ordinal, interval, or ratio, and why you came to that conclusion. What does it mean to say the variable is normally distributed? What is probability value and explain how a probability value of .05 in your example is related to the...

The following data have been collected by capital budgeting analysts at Halda, Inc. concerning an investment...

The following data have been collected by capital budgeting analysts at Halda, Inc. concerning an investment in an expansion of the company's product line. Analysts estimate that an investment of $210,000 will be required to initiate the project at the beginning of 2016. Estimated cash returns from the new product line are summarized in the following table; assume that the returns will be received in lump sum at the end of each year. Year Amount of Cash Return 2019 $...

The following data have been collected by capital budgeting analysts at Sunset Beach Inc. concerning an...

The following data have been collected by capital budgeting analysts at Sunset Beach Inc. concerning an investment in an expansion of the company's product line. Analysts estimate that an investment of $475,000 will be required to initiate the project at the beginning of 2019. The estimated cash returns from the new product line are summarized in the following table; assume that the returns will be received in a lump sum at the end of each year: Table 6-4. (Use appropriate...

The sample data below have been collected based on a simple random sample from a normally...

The sample data below have been collected based on a simple random sample from a normally distributed population. Complete parts a and b. 5 4 0 5 7 6 9 0 8 4 a. Compute a 98% confidence interval estimate for the population mean. The 98% confidence interval for the population mean is from to . (Round to two decimal places as needed. Use ascending order.) b. Show what the impact would be if the confidence level is increased to...