Question

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

Run a traditional approach regression for the long margined (52%) position in Adobe stock. Use proper identifiers!!

The alpha is:  

The beta is

Answer 1

cniweN、-We Yegleçsed -Rond on the other vcuiables. The rogress icn lihe ig oRycn la-yr Band Index Hence d8.9

Answer 2

We have to regress T-Bonds on other variables.

T.Bond=149.9-(0.0303*Adobe)+(0.00029*S&P500)-0.014*Ryan 10-years Bond index)

So

   The alpha is:  148.9

And The Beta is (-0.0303, 0.00029,0.014)