Write a study on the topic, “What Does Quantum Finance Mean?”IV. Question 4 [Regression Excercise]
Use monthly total returns (File: return data.xlsx) for the S&P 500 index, Xcel Energy
(XEL), NVIDIA (NVDA), Bank of America (BAC), and Tesco PLC (TSCO) from July 2012
through June 2017.
a) Create an XY (Scatter) plot to show the relationship between the returns on each
individual stock and the S&P 500 (SPY). Estimate the slope of a regression equation
of this data.
B) How to interprete the coefficients you produced? What is the economic intuition
behind those numbers?
c) Add a linear trend line to each chart, and place the equation and R2 on each chart.
How much of the variability in each stock’s returns can be explained by variability in
the S&P 500?
d) Repeat part a) and c) with an equally weighted portfolio that includes all of these
stocks. Use the arithmetic average of the monthly returns of each stock as the expected
return in your portfolio. Do you see any improvements in the R-square?
I have attached a file please complete it on there and send it back, I will also send an example on how it should be done , it is from another classmate. Please let me know if you have any questions
I have also listed a sample from a classmate they did it correctly so please format it the same way as them and everything they did you can double check your work with theres. Please add the answers for 4A-F on the homework assignment I listed not on a seperate excel. I really appreciate it and will tip very well I need this asap. I have also submitted the return data that you will need. Make all graphs needed please but may look different from theres so it is not a copy of exact same work.
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