Question: The Chapter Resources section of MyFinanceLab has data on Microsoft and the S&P 500 from 1987 to 2006. a. Estimate Microsofts beta using linear regression

The Chapter Resources section of MyFinanceLab has data on Microsoft and the S&P 500 from 1987 to 2006.

a. Estimate Microsoft’s beta using linear regression over the periods 1987–1991, 1992–1996, 1997–2001, and 2002–2006.

b. Compare the four estimated betas. What do you conclude about how Microsoft’s exposure to systematic risk has changed over time? What do you think explains the change?

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