Go to finance.yahoo.com. Choose any public stock that you want to analyze. Use data from Yahoo...

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Go to finance.yahoo.com. Choose any public stock that you want to analyze. Use data from Yahoo Finance to calculate the beta of the stock. Start by downloading the monthly adjusted closing prices of the stock and the S&P 500 (^GSPC) in the Historical Prices section. Copy the data into Excel and calculate the monthly rates of return (based on adjusted closing prices) for each series. Using the entire period for which data are available for both the stock and S&P 500, estimate a regression with the stock's excess return as the dependent (Y) variable and the S&P 500 excess return as the independent (X) variable (Use LINEST function). To compute excess return, assume the risk-free rate to be 3.5%. Finally, compare your results to the beta listed in Yahoo Finance Stoc Report. Do any of your results match the Yahoo Finance Report beta? What might explain the differences? Go to finance.yahoo.com. Choose any public stock that you want to analyze. Use data from Yahoo Finance to calculate the beta of the stock. Start by downloading the monthly adjusted closing prices of the stock and the S&P 500 (^GSPC) in the Historical Prices section. Copy the data into Excel and calculate the monthly rates of return (based on adjusted closing prices) for each series. Using the entire period for which data are available for both the stock and S&P 500, estimate a regression with the stock's excess return as the dependent (Y) variable and the S&P 500 excess return as the independent (X) variable (Use LINEST function). To compute excess return, assume the risk-free rate to be 3.5%. Finally, compare your results to the beta listed in Yahoo Finance Stoc Report. Do any of your results match the Yahoo Finance Report beta? What might explain the differences?

Answer rating: 100% (QA)

Sure Lets take Apple Inc AAPL as our example stock First lets download the monthly adjusted closing prices of AAPL and the SP 500 GSPC from Yahoo Fina... View the full answer