Choose and explain why? 7. The UTX stock is __________over the period under stud
ID: 3339415 • Letter: C
Question
Choose and explain why?
7. The UTX stock is __________over the period under study.
a. not volatile
b. passive
c. aggressive
d. volatile
e. c and d
8. I order to obtain ________ estimate of the UTX beta, one should use ___________ to test the CAPM for UTX stock because the numerical value of intercept is statistically insignificant.
a. imprecise; regression-through-origin
b. precise; regression-through-origin
c. precise; zero-intercept-regression
d. imprecise; zero-intercept-regression
e. B and C
5. To test whether the overall regression model is significant, one uses a. the F-statistic b. the t-statistic c. R2-statistic d. the standard error statistic Given the OLS estimates of the CAPM stochastic regression model, UTXR--BSSP500, u, UTXR is the monthly return on United Technologies Corporation (UTX) stock, S&P500; is the monthly return on the S&P500; market index and u is the error term; Dependent Variable: RUTX Method: Least Squares Date: 11/05/16Time: 11:59 Sample (adjusted): 1993M12 1999MO3 Included observations: 64 after adjustments Variable Coefficient Std. Error t-StatisticProb 0.006564 0.0056651158552 0.2511 1.231945 0.122017 10.09653 0.0000 RINDEX R-squared 0.621813 Mean dependent var 0.028365 Adjusted R-squared0.615713 S.D. dependent var 0.067595 S.E. of regression0.041903 Akaike info criterion -3.476173 3.408708 3.449595 101.9399Durbin-Watson stat 2.018383 Sum squared resid0.108863 Schwarz criterion Log likelihood 113.2375 Hannan-Quinn criter.I Prob(F-statistic) 0.000000Explanation / Answer
5) over all regression is checked by F statistics. As this takes overall effect of all coefficient in the regression.
7)The UTX stock is passive over the period under study.
As there is positive R2 we get.
8) precise, as we all want our regression line gets closer to the original line.
Regression through origin, this test will explain us the regression coefficient is zero or not.