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Full question:</u></h3>
A linear regression to estimate the relation between General Motors' stock returns and the market's return gives the best fitting line that represents the relation between the stock and the market. The slope of this line is our estimate of ________.
A) alpha
B) beta
C) risk-free rate
D) volatility
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Answer:</u></h3>
A linear regression to estimate the relation between General Motors' stock returns and the market's return gives the best fitting line that represents the relation between the stock and the market. The slope of this line is our estimate of beta
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Explanation:</u></h3>
Beta is a broadly applied amount in investment commentary. In economics, the beta of a firm applies to the subtlety of its heritage price concerning an average or benchmark. SLOPE which describes the linear regression implemented among the two variables.
Manipulating beta tacts can be beneficial as a member of a wider investment strategy to restrain downside risk or accomplish short-term gains, but it's essential to retrieve that it is also controlled to the same levels of market levity as any other trading strategy. A beta may yield varying results because of the fluctuations in determining it, such as various periods practiced to estimate data.
Answer:
False
Explanation:
According to these philosophers, these integrated systems have lowered the cost of the products and this lower cost has enabled companies to quote lower prices to win greater revenues from increased number of sales.
Answer: A blue ocean type of offensive strategy involves abandoning efforts to beat competitors in existing markets but instead invest a new market segment or industry whereby existing competitors are irrelevant and one which allows a company to create and capture nee demand (Option C)
Explanation:
Blue ocean strategy is the pursuit of differentiation and low cost by firms in order to create a new market space and demand. Blue ocean strategy is about the creation and making use of uncontested market space, which therefore makes competition irrelevant.
Blue ocean strategy are used for industries that are not in existence today, industries that tap the unknown market space and are untainted by competition. The blue oceans gives room for growth as demand is created and not fought for. A blue ocean strategy describes the wider potential and benefits to be enjoyed when an unexplored market is explore.
Answer:
a) The correlation coeffcient is given by:
And replacing we got:
b) For this case we can conclude that we have a strong, negative linear association between the two stock prices.
Explanation:
Part a
For this case we have the following info:
represent the sample deviation for the variable X
represent the sample deviation for the variable Y
represent the covariance between the variables X and Y
The correlation coeffcient is given by:
And replacing we got:
Part b
Describe the relationship between prices of these two stocks.
For this case we can conclude that we have a strong, negative linear association between the two stock prices.
