Go to Connect and link to the material for Chapter 12, where you will find a spreadsheet

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Go to Connect and link to the material for Chapter 12, where you will find a spreadsheet containing 5 years of monthly prices for Hershey (HSY), U.S. Steel (X), and the S&P 500. Calculate the monthly price changes.

a. Calculate the beta of each firm. Use Excel’s SLOPE function, which fits a regression line through a scatter diagram of two series of numbers.

b. Does the relative magnitude of each beta make sense in terms of the business risk of the two firms? Explain.

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Fundamentals of Corporate Finance

ISBN: 978-1260566093

10th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Oct 25, 2019 08:38 AM

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Go to Connect and link to the material for Chapter 12, where you will find a spreadsheet

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a Navigating to httpfinanceyahoocom Look up each security and GSPC SP 500 index and select the Historical Data menu Set the criteria to a date range of 812011 through 812016 and a frequency of monthly ...View the full answer

Fundamentals of Corporate Finance

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