The following prices are for the British insurer ADX plc and the FTSE 100 Index.

Use a spreadsheet to calculate ADX plc’s beta for the full period. Now calculate the beta using data for March 2014 to September 2014. Calculate the beta for October 2014 to March 2015. What can you say about the different beta estimates? Is this evidence for or against CAPM? Explain your answer.

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Date Mar-15 Feb-15 Jan-15 Dec-14 Nov-14 Oct-14 Sep-14 Aug-14 Jul-14 Jun-14 May-14 Apr-14 Mar-14 ADX plc 1,187.00 1,077.00 941.00 852.00 922.50 1,179.00 1,263.00 1,365.00 1,549.00 1,661.00 1,723.00 1,692.00 1,554.00 FTSE 100 5,768.50 5,871.50 5,681.60 5,572.30 5,505.40 5,544.20 5,128.50 5,394.50 5,815.20 5,945.70 5,990.00 6,069.90 5,908.80