Based on the table above, if you are using Intercept/Var(residuals) regression-based approach to portfolio construction,...
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Finance
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?
Yes, CCE
Yes, MMM
Yes, BIIB
No
Cannot tell
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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