Question

A financial analyst tested the performance of a security LV against the S&P 500 Index during 121 months of transactions. The figure below shows partvof the output from a regression between the two sets of returns.

ANOVA
	df	SS	MS
Regression	1	0.080	0.080
Residual	120	0.107	0.000
Total	121	0.187
	Coefficients		Standard Error
Intercept	-0.001		0.003
S&P500	0.346		0.037

Find the R2 and provide a brief explanation about the meaning of your result. Find the t-statistic for the coefficient of the intercept, and of the variable S&P500.

Give a 95% confidence interval for the coefficient for the variable S&P500.What return for the security LV would be expected if S&P500’s return was 2.5%?

Answer 1