The y-intercept and slope coefficient of the x-variable are 0.013 and .892, respectively. If the benchmark return is 14%, the regression model will estimate the portfolio return closest to

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.6: Exponential And Logarithmic Equations
Problem 68E
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Portfolio Benchmark
22.00%
16.00%
-7.50%
-2.30%
8.63%
17.88%
21.25%
-9.63%
-3.88%
3.25%
9.15%
11.21%
9.63%
15.25%
6.25%
-37.00%
15.00%
5.75%
-42.00%
13.75%
An analyst is trying to understand the variation of portfolio returns shown in the left column by analyzing the variation of benchmark
returns in the right column. Here, the analyst uses the benchmark returns as the explanatory variable, i.e., the x-variable, to explain the
variation of portfolio returns, the y -variable. The analyst performs a regression analysis between the x and y variables.
The y-intercept and slope coefficient of the x-variable are 0.013 and .892, respectively. If the benchmark return is 14%, the regression
model will estimate the portfolio return closest to
O 0%
89.2%
1.3%
O 13.79%
Transcribed Image Text:Portfolio Benchmark 22.00% 16.00% -7.50% -2.30% 8.63% 17.88% 21.25% -9.63% -3.88% 3.25% 9.15% 11.21% 9.63% 15.25% 6.25% -37.00% 15.00% 5.75% -42.00% 13.75% An analyst is trying to understand the variation of portfolio returns shown in the left column by analyzing the variation of benchmark returns in the right column. Here, the analyst uses the benchmark returns as the explanatory variable, i.e., the x-variable, to explain the variation of portfolio returns, the y -variable. The analyst performs a regression analysis between the x and y variables. The y-intercept and slope coefficient of the x-variable are 0.013 and .892, respectively. If the benchmark return is 14%, the regression model will estimate the portfolio return closest to O 0% 89.2% 1.3% O 13.79%
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