Question

Use the Leveraged Approach to calculate the beta of a SHORT (59%) position in Adobe using regression analysis, the following applies:

X and Y variables:

Table 11.1 Weekly Market Data Ryan 10-yr t Date 500 T-bond 015-Sep 122-Sep 2 29-Sep 3 6-Oct 4 13-Oct 5 20-Oct 6 27-Oct 73-Nov 8 10-Nov Adobe S&P 72.61 78.92 84.16 88.43 85.28 77.34 75.57 79.75 81.69 2155.21 2234.56 125.71273 2552.15 2561.02 1953.25 2043.63 2256.61 2392.79 2435.92 Bond Index 1520.14 1525.62 1513.01 1510.33 1492.42 1488.13 1500.08 1491.64 1489.41 125.0125 125.0071 125.7764 125.6717 125.5346 127.3021 125.6177 125.725 6.75% T-Bond Stock Stock Index 10/01/24 Bond Index Question 13 4 pts Use the Leveraged Approach to calculate the beta of a SHORT (59%) position in Adobe using regression analysis, the following applies: a) The independent X variable input is the ROPC for a (100%, 52%, 59%, 0%) investment in a (long, short) position in (full asset name) b) The Dependent Y variable input: the ROPC for a (100%, 52%, 59%, 0%) investment in a (long, short) position in (full asset name). Table 3 Regression Results (59% short) Coefficient Standard t Stat LCL UCL Error Alpha -0.031927 0.071218 -0.1699 0.18650.1724 Beta 3.65971 3.053578-9.5342 5.4095 0.5246 Y-: ROPC 5990 Short COG X = ROPC 100% Long S&P 500 Stock Market Index

Answer 1

a)
X variable
59%
short
COG

b)
Y variable
100%
long
S&P 500