statistics

BCO127 Applied Management Statistics Task brief & rubrics

Case Problem 1: Stock Market

a. Using the dataset “Stock Market”, build a table with the descriptive statistics (N, Mean, Standard Deviation, Minimum, Median and Maximum) (10 points)

· Which companies had a higher mean monthly return than the market (as measured by the S&P 500)? (5 points)

· Which one was the most volatile (has the largest standard deviation)? Why is the S&P Index the less volatile? (5 points)

b. Find the estimated regression equation relating each of the individual stocks to the S&P 500 and the value of R-Sq for each equation. (25 points)

c. Find the betas (slope of estimated regression equation) for the individual stocks from the regression output. (10 points)

· What does a stock with a beta greater than 1 indicate? And less than 1? What is the stock that benefits most from a rising market? Why? (25 points)

d. What dp the R-Sq values indicate? (20 points)

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