You run a regression for a stock's return on a market index and find the following Excel output:

The characteristic line for this stock is Rstock = ________ + ________ Rmarket.
A) .35; .12
B) 4.05; 1.32
C) 15.44; .97
D) .26; 1.36

Question

You run a regression for a stock's return on a market index and find the following Excel output:

The characteristic line for this stock is Rstock = ________ + ________ Rmarket.
A) .35; .12 
B) 4.05; 1.32 
C) 15.44; .97 
D) .26; 1.36

Quizplus · Accepted Answer

Intercept equals 4.05, and slope equals 1.32.

You Run a Regression for a Stock's Return on a Market