Question

In: Statistics and Probability

(k) Last month, the TSE Index's monthly rate of return was 1.5%. This is, at the...

(k) Last month, the TSE Index's monthly rate of return was 1.5%. This is, at the end of last month the value of the TSE Index was 1.5% higher than at the beginning of last month. With 95% confidence, find the last month's rate of return on Acme Oil and Gas stock.

AcmeRofReturn TSERofReturn
0.00885 -0.023314
0.035088 0.041661
-0.016949 0.027904
0.043103 0.054967
0.126722 0.069449
-0.05379 -0.015124
0.108527 0.029879
-0.076923 0.007837
0.017677 -0.052583
0.131514 0.021151
0.052632 0.063535
-0.066667 0.00864
0.109375 0.063966
-0.034205 -0.040215
0.05625 0.060856
0.143984 -0.028918
-0.124138 -0.050605
0.023622 0.027862
-0.003846 0.000113
0.019305 0.055311
-0.041667 0.061654
-0.047431 0.013893
0.03112 -0.009909
-0.050302 -0.030256
-0.082627 -0.062824
-0.307159 -0.253262
0.276667 0.014857
0.031332 0.095704
-0.101266 0.021373
-0.084507 0.021904
0.107692 0.036201
-0.1 -0.066037
0.089506 0.043211
0.124646 0.059434
-0.093199 -0.025271
0.116667 0.024004
0.104478 0.010021
0.011261 -0.015812
-0.008909 -0.001881
-0.053933 0.041137
-0.021378 0.035491
-0.007282 0.105841
0.056235 0.007942
-0.055556 0.07097
0.036765 0.035234
0.179669 -0.012279
0.146293 -0.010335
-0.033217 0.092537
0.034358 0.020263
0.092657 0.074823
0.072 -0.083831
-0.044776 -0.076596
0.0875 -0.092932
0.096264 0.012734
-0.083879 0.041643
0.03176 -0.15388
-0.017194 -0.061872
0.200621 0.005052
-0.009401 0.063128

Solutions

Expert Solution

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.348697232
R Square 0.121589759
Adjusted R Square 0.106179053
Standard Error 0.089952736
Observations 59
ANOVA
df SS MS F Significance F
Regression 1 0.063841521 0.063842 7.889954 0.006797419
Residual 57 0.461215204 0.008091
Total 58 0.525056725
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 0.016647937 0.011773929 1.413966 0.162811 -0.006928949 0.040224824
X Variable 1 0.538690995 0.191779633 2.808906 0.006797 0.154658904 0.922723086


Related Solutions

Last month, the TSE Index's monthly rate of return was 1.5%. This is, at the end...
Last month, the TSE Index's monthly rate of return was 1.5%. This is, at the end of last month the value of the TSE Index was 1.5% higher than at the beginning of last month. With 95% confidence, find the last month's rate of return on Acme Oil and Gas stock. TSERofReturn | AcmeofReturn -0.53808 1.69139 -1.30760 0.62487 1.55857 1.29760 -0.61615 -1.96510 0.36527 -1.66576 -0.72767 0.72052 1.24631 3.02357 -0.72767 1.56045 0.36527 1.71184 -1.96559 -4.36035 -0.79459 -1.10648 -1.02879 -0.40621 0.34296 -1.51823...
your savings account yielded 1.5% last year. the inflation rate was 2%. what real return did...
your savings account yielded 1.5% last year. the inflation rate was 2%. what real return did you earn on this account. round your answer to the nearest tenth of a percent
The Adams Co. pays their employees monthly on the last day of the month. Use the...
The Adams Co. pays their employees monthly on the last day of the month. Use the following information to compute the total FICA tax for the December 30 payroll for the employees and the employer. Employee Annual Salary Smith, J. $42,150 Jones, T. $30,500 Bass, J. $36,000 Carson, A. $161,280 Williams, M. $40,800 Jones, A. $29,600 Mullins, F. $106,800 Smith, E. $76,800 Evans, R. $24,000 Turner, R. $68,960
Stock A has a beta of 1.5, the risk-free rate is 4% and the return on...
Stock A has a beta of 1.5, the risk-free rate is 4% and the return on the market is 9%. If inflation changes by -2%, by how much will the required return on Stock A change?
A company has a beta of 1.5. The risk-free rate of return is 5 percent and...
A company has a beta of 1.5. The risk-free rate of return is 5 percent and the market risk premium is 6 percent. Find the required rate of return on the stock (i.e., the cost of equity capital). b) The firm will pay a dividend of $4.00 per share next year. The firm will increase the dividend payment by $0.50 a share every year for the next 5 years (i.e., years 2 to 6). Thereafter, the dividends are expected to...
Stock J has a beta of 1.5 and an expected return of 15%, while Stock K has a beta of .75 and an expected return of 9%.
Stock J has a beta of 1.5 and an expected return of 15%, while Stock K has a beta of .75 and an expected return of 9%. You want a portfolio with the same risk as the market. What is the expected return of your portfolio?Group of answer choices10 percent11 percent12 percent13 percent14 percent
Electronics Service Co. pays salaries monthly on the last day of the month. The following information...
Electronics Service Co. pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1: Administrative salaries $ 82,000 Sales salaries 61,000 Office salaries 40,000 Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent on all salaries. Duke reached the $110,000 amount in September. His salary in December amounted to $11,000 and is...
Electronics Service Co. pays salaries monthly on the last day of the month. The following information...
Electronics Service Co. pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1: Administrative salaries $ 80,000 Sales salaries 68,000 Office salaries 49,000 Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent on all salaries. Duke reached the $110,000 amount in September. His salary in December amounted to $10,000 and is...
Pennsylvania Company has a monthly gross payroll (paid on the last day of each month) of...
Pennsylvania Company has a monthly gross payroll (paid on the last day of each month) of $516,000, which is subject to unemployment taxes (Federal at 0.8% and State at 5.4%). All earnings are subject to 7.65% FICA tax (combined Social Security and Medicare). Federal income tax withholdings are 25%, and state income tax withholdings are 8% of total earnings. Assuming no individual employee has reached the maximum limit for Social Security tax or for unemployment tax, which of the following...
Month Monthly Returns (%) Month Monthly Returns (%) Month Monthly Returns (%) Ended Yahoo Google S&P500...
Month Monthly Returns (%) Month Monthly Returns (%) Month Monthly Returns (%) Ended Yahoo Google S&P500 Ended Yahoo Google S&P500 Ended Yahoo Google S&P500 Dec-07 -13.241 -0.219 -0.692 Dec-06 -5.442 -5.018 1.403 Dec-05 -2.610 2.457 0.036 Nov-07 -13.794 -1.980 -4.182 Nov-06 2.544 1.767 1.899 Nov-05 8.818 8.806 3.778 Oct-07 15.861 24.632 1.590 Oct-06 4.193 18.534 3.257 Oct-05 9.249 17.595 -1.668 Sep-07 18.093 10.096 3.736 Sep-06 -12.314 6.174 2.575 Sep-05 1.561 10.650 0.810 Aug-07 -2.237 1.029 1.497 Aug-06 6.227 -2.087 2.376...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT