Originally Posted by
bendoumbia
i'm taking this finance class , and i'm having a hard time
i have some document on excell and i'm suppose to do this by tuesday i need some help
anyone who can help i can send the excell file
this is what i have to do :
Regress the low capitalization portfolio or small stocks returns less the risk free returns (Y) – US Market on the high capitalization portfolio or large stocks returns less the risk free returns– US market. See table 5.3 in book and Excel file sent previously... Interpret the estimated slope or Beta and the regression summary statistics such as R-square (the square of the correlation number). What does this regression tell you the relative risk and return of these two portfolios?
i can't send the excell sheet here because it's too large but i can email it
You are being asked to build a linear model to estimate the relative risk and return of two portfolios. If you don't mind, could you please clarify the following:
1. How many models are you building?
2. For each model, what are the Independent variables and what is the dependent variables? I am having trouble making the distinction from the paragraph.
3. Please restate our final question, is it simply that you want to know the ROIC , return on invested capital?
Finally, if you are doing the linear regression in Excel, go to Tools>Add Ins>Analysis Tool Pack. This will allow you to create a crappy Excel model.