Essay On Positive Returns

R Code Essay Preview: R Code Report this essay 1．[pic 1][pic 2]The estimate of β is 1.4626.A 95% confidence interval for β is [0.9671, 1.9581].r- 0.04=1.4626*0.06, r=0.1278.A 95% confidence interval for the interest rate is [0.0980, 0.1575].NPV=-100,000+8000/(1+r)+…+8000/(1+r)^132=-100,000+8000/r=-37380 [-18387.41,- 49202.46] All values in this interval are negative. The investment has high risk of loss. r