Calculate the Beta for Amazon for the calendar year 2020. Upload at least one worksheet to show
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Calculate the Beta for Amazon for the calendar year 2020. Upload at least one worksheet to show your calculations.
- Below are my calculations in terms of finding Beta for Amazon in the year 2020. I took the closing prices on a monthly basis and S&P 500 closing price on a monthly basis (resource is from Yahoo Finance).
- Daily Return for Amazon: (Closing Price - Previous Closing Price) / Previous Closing Price) * 100. I did the same for S&P 500
- Next I ran a regression: Y variable is Amazon holding period return minus risk-free rate. X variable is S&P 500 holding period return minus risk-free rate.
I set the risk-free rate at 1%. I'm not too sure where this information can be found. Any advice here would be great as it wasn't included in the problem. I also did a separate calculation for Covariance and Variance and got the same answer as my regression .8517 beta value
Please calculate beta with the closing prices provided in my worksheet
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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