Pfizer Inc

question 27

Essay

Pfizer Inc. is the world's largest research-based pharmaceutical company. Monthly data for Pfizer's risk-adjusted return and the risk-adjusted market return are collected for a five-year period (n = 60). The accompanying table shows the regression results when estimating the Capital Asset Pricing Model (CAPM) model for Pfizer's return. a. At the 5% significance level, is the beta coefficient less than one? Show the relevant steps of the appropriate hypothesis test.
B) At the 5% significance level, are there abnormal returns? Show the relevant steps of the appropriate hypothesis test.

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Definitions:

Psychological Counseling

is the provision of professional assistance and guidance in resolving personal or psychological problems, facilitated by a qualified therapist or counselor.

Inherited Disorders

Genetic disorders passed down from parents to their offspring through their genes.

Polygenic

Relating to or involving many genes, contributing to the phenotype of an organism.

Multiple Gene

refers to the involvement of more than one gene in influencing a particular trait or characteristic, highlighting the complex nature of genetic inheritance.