Simple Linear Regression 27
taBLe 2.2 Data to Estimate the Characteristic Line of Two Large-Cap Mutual Funds
Month Market Excess Return Excess Return for Fund A Excess Return for Fund B01/31/1995 2.18 0.23 0.86
02/28/1995 3.48 3.04 2.76
03/31/1995 2.50 2.43 2.12
04/30/1995 2.47 1.21 1.37
05/31/1995 3.41 2.12 2.42
06/30/1995 1.88 1.65 1.71
07/31/1995 2.88 3.19 2.83
08/31/1995 –0.20 –0.87 0.51
09/30/1995 3.76 2.63 3.04
10/31/1995 –0.82 –2.24 –1.10
11/30/1995 3.98 3.59 3.50
12/31/1995 1.36 0.80 1.24
01/31/1996 3.01 2.93 1.71
02/29/1996 0.57 1.14 1.49
03/31/1996 0.57 0.20 1.26
04/30/1996 1.01 1.00 1.37
05/31/1996 2.16 1.75 1.78
06/30/1996 0.01 –1.03 –0.40
07/31/1996 –4.90 –4.75 –4.18
08/31/1996 1.71 2.32 1.83
09/30/1996 5.18 4.87 4.05
10/31/1996 2.32 1.00 0.92
11/30/1996 7.18 5.68 4.89
12/31/1996 –2.42 –1.84 –1.36
01/31/1997 5.76 3.70 5.28
02/28/1997 0.42 1.26 –1.75
03/31/1997 –4.59 –4.99 –4.18
04/30/1997 5.54 4.20 2.95
05/31/1997 5.65 4.76 5.56
06/30/1997 4.09 2.61 2.53
07/31/1997 7.51 5.57 7.49
08/31/1997 –5.97 –4.81 –3.70
09/30/1997 5.04 5.26 4.53
10/31/1997 –3.76 –3.18 –3.00
11/30/1997 4.24 2.81 2.52
12/31/1997 1.24 1.23 1.93
01/31/1998 0.68 –0.44 –0.70
02/28/1998 6.82 5.11 6.45
03/31/1998 4.73 5.06 3.45
04/30/1998 0.58 –0.95 0.64
(continued)