Use Yahoo Finance to download the historical prices for Caterpillar (CAT) and (SPY).
For the purposes of this assignment and given the recent interest rate environment, you may assume a risk- free rate of 0% when running the regression.
However, note that this will not always be the case, and normally we would subtract the risk-free rate from each return. Please staple your regression output (reduced to one single printed page) to this document to turn in.
Use a CAPM single-index framework to find the beta for CAT. What information does this beta provide you as an investor?
Interpret the coefficient in terms of both magnitude and statistical significance. What is CAT's alpha?
What information does the alpha provide an investor? Interpret the alpha in terms of magnitude and significance. beta, difference between CAT's actual return and expected return on March 2nd 2017.