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Based on the table above, if you are using Intercept/Var(residuals) regression-based approach to portfolio construction,...

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Finance

  1. Based on the table above, if you are using Intercept/Var(residuals) regression-based approach to portfolio construction, would you have to sell short any one of the securities?

  1. Yes, CCE
  2. Yes, MMM
  3. Yes, BIIB
  4. No
  5. Cannot tell

image

Average St. Dev. Variance Intercept Beta Var of Residuals S&P 500 1.55% 3.12% 0.000973 CCE MMM BIIB 1.64% 1.06% 2.32% 8.90% 9.26% 7.56% 0.007928 0.008569 0.005711 -0.0015 0.0031 1.45 1.02 0.006522 0.004698 From Regression Results 0.0024 0.65 0.007517 Average St. Dev. Variance Intercept Beta Var of Residuals S&P 500 1.55% 3.12% 0.000973 CCE MMM BIIB 1.64% 1.06% 2.32% 8.90% 9.26% 7.56% 0.007928 0.008569 0.005711 -0.0015 0.0031 1.45 1.02 0.006522 0.004698 From Regression Results 0.0024 0.65 0.007517

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