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Interpreting Beta Regressions Assignment-

1. Is the marginal investor in Nike well diversified? Why do we care?

A BETA analysis page from Bloomberg for NKE. Using that page, please answer the following questions.

2. What is the beta estimate from the regressions and what is the standard error? What are the 66% and 95% confidence intervals1 of the beta estimate?

3. What is the R-squared of the regression? What is the statistics interpretation of that number? What is the finance interpretation of that number? (Note that for the R-squared ".41" means 41 %.)

4. Compute Nike's annualized Jensen's alpha. What does this Jensen's Alpha tell you about Nike? (For this calculation, you may assume the average short-term risk free rate for the last two years was 0.5%.)

Attachment:- Bloomberg Screen.rar

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91950933

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