CASE-2

Market Return % Stock Return %

16.02 21.05 25
12.17 17.25
11.48 13.1 f(x) = 1.16695795778391 x − 1.09074124681469
20 R² = 0.777495365123338
17.62 18.23
20.01 21.52
14 13.26 15
13.22 15.84
17.79 22.18
15.46 16.26 10

8.09 5.64
11 10.55 5
18.52 17.86
14.05 12.75
8.79 9.13 0
6 8 10 12 14 16 18 2
11.6 13.87

Correl- 0.881756976226068
There exist a strong positive correlation between market return and stocks return

Slope =1.16695
Intercept=-1.09074

Regression line equation to estimate Stock Return from Market Return

Y=1.16695X-1.09074
As from the regression line equation Y=1.16695X-1.09074 where 1.16695 is the slope which is greater than 1.1 , it indicates th
 SUMMARY OUTPUT
91 x − 1.09074124681469
38
Regression Statistics
Multiple R 0.881756976226068
R Square 0.777495365123338
Adjusted R Square 0.760379623978979
Column B
Linear (Column B) Standard Error 2.30592809902219
Observations 15

ANOVA
df
Regression 1
Residual 13
14 16 18 20 22
Total 14

Coefficients
Intercept -1.09074124681468
Market Return % 1.16695795778391

om Market Return RESIDUAL OUTPUT

eater than 1.1 , it indicates that the stock has above average risk. Observation Predicted Stock Return %
1 17.6039252368836
2 13.1111370994155
3 12.3059361085446
4 19.4710579693378
5 22.2600874884414
6 15.2466701621601
7 14.3364429550886
8 19.6694408221611
9 16.9504287805246
10 8.34994863165716
11 11.7457962888083
12 20.5213201313433
13 15.3050180600493
14 9.16681920210589
15 12.4459710634787
 Name-Nitish Kumar
21MBAMKT111

SS MS F Significance F
241.54253616 241.5425 45.42575 1.384E-05
69.124957172 5.317304
310.66749333

Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%

Upper 95.0%
2.4940295082 -0.437341 0.669042 -6.478764 4.297282 -6.478764 4.297282
0.1731426899 6.739863 1.384E-05 0.792906 1.54101 0.792906 1.54101

Residuals
3.4460747631
4.1388629006
0.7940638915
-1.241057969
-0.740087488
-1.986670162
1.5035570449
2.5105591778
-0.690428781
-2.709948632
-1.195796289
-2.661320131
-2.55501806
-0.036819202
1.4240289365