please see below fast food stock coefficients. I run a CAPM regression and need
ID: 3296779 • Letter: P
Question
please see below fast food stock coefficients. I run a CAPM regression and need to have this data explain and analyzed. can you please explain as a whole? or individually?
please also explain the 10, 5 and one percent significance and beta for each. thank you
STOCK TICKER Coefficients WEN BKW MCD CMG PZZA DPZ PZA.TO RRGB DRI Adjusted R Square 0.895793961 0.896856158 0.965602884 0.933933 0.952098 0.921151 0.883499 0.985061 0.686696 Intercept -0.002944431 -0.001119096 -0.000781635 -0.00291 -0.00066 -0.00047 0.001771 -0.00073 0.000903 mktrf 1.284308313 0.899331964 0.944325533 1.019497 0.966902 0.980923 0.843335 0.993073 0.82227Explanation / Answer
R-sq: degree of determination; percentage of variability in the dependent variable explained by the model.
Adjusted R-sq: R-sq penalised for complexity.
Ex: Adj-Rsq of 0.8957 tells that 89.57% of variability in dependent variable explained by the model.
Intercept: when independent variable is 0, the value of dependent variable will be the intercept
ex: -.00294: if mktrf=0, WEN=-.00294
coefficients: unit increase in independent variable gives rise to change of that coefficient in dependent variable.
Ex 1.284: if we increase "mktrf" by 1, WEN will increase by 1.284 units.
Note: Standard error for each coefficients should be given to test for significant of beta's.
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