An analyst is seeking to generate a simple linear regression equation that will allow him to estimate the returns of a beverage company's stock against the returns of the S&P 500. The analyst has compiled the following information: σ(S&P500 )=16.4% σ(beverage company)=22.0% ρ=0.82 mean annual return S&P 500=8.2% risk-free interest rate=4% What is the slope coefficient of the regression equation?
An analyst is seeking to generate a simple linear regression equation that will allow him to estimate the returns of a beverage company's stock against the returns of the S&P 500. The analyst has compiled the following information: σ(S&P500 )=16.4% σ(beverage company)=22.0% ρ=0.82 mean annual return S&P 500=8.2% risk-free interest rate=4% What is the slope coefficient of the regression equation? A.1.85; B.1.10; C.2.34; D.0.80