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Estimate a PE regression with all companion variables as independent variables. What is the coefficient estimate on beta? 35.7411.972.902.33 Does the beta coefficient have the anticipated sign? No Yes Question 5 5 pts What percent of variation in the PE ratio do these companion variables explain? 11.970.630.41 Question 6 5pt Using this regression equation, compute the predicted PE for Boeing. What is it? 14.56 17.30 12.90 At the current P/E multiple, is Boeing a good buy? Yes No Question 8 5 pts Which stock is most overvalued on a percentage basis i.e.,(actual-fitted)/fitted? Boeing General Motors-Hughes McDonnell Dougal Question 9 5 pts Which stock is the best buy based on % misvaluation? General Dynamics Thiokol Northrop Estimate a PE regression with all companion variables as independent variables. What is the coefficient estimate on beta? 35.7411.972.902.33 Does the beta coefficient have the anticipated sign? No Yes Question 5 5 pts What percent of variation in the PE ratio do these companion variables explain? 11.970.630.41 Question 6 5pt Using this regression equation, compute the predicted PE for Boeing. What is it? 14.56 17.30 12.90 At the current P/E multiple, is Boeing a good buy? Yes No Question 8 5 pts Which stock is most overvalued on a percentage basis i.e.,(actual-fitted)/fitted? Boeing General Motors-Hughes McDonnell Dougal Question 9 5 pts Which stock is the best buy based on % misvaluation? General Dynamics Thiokol Northrop

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