Pfizer Inc

question 66

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 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.

---

Definitions:

Sum-Of-The-Years-Digits

A depreciation method that results in a more accelerated write-off of assets than the straight-line method, involving adding the digits of the years of an asset's useful life.

Heavy Equipment

Large machinery used in construction, mining, and manufacturing, essential for executing large-scale tasks.

Sum-Of-The-Years-Digits

A method of accelerated depreciation where the asset’s cost is multiplied by a sequence of fractions representing the sum of the years’ digits.

Resale Value

Resale value is the expected amount that an asset or item will sell for in the future after accounting for depreciation.