1. (20 points) Refer to the table below. The table below shows the annual returns (in percentages) for 2 major market indices. For each index, calculate the arithmetic mean return and the geometric mean return of full-year returns from 2005-2015. What is the relationship between the arithmetic and geometric mean returns?

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005
NASDAQ Composite Index	1.37	8.59	50.0	-31.5	-21.1	-39.3	85.6	39.6	21.6	22.7	39.9
Dow Jones Industrial Average	-0.61	3.15	25.3	-16.8	-7.1	-6.2	25.2	16.1	22.6	26.0	33.5

2. (i) Estimate the stock beta for Walt Disney Co (DIS). Download the monthly closing prices for 5 years into Excel. Choose a market index (e.g. S&P 500) and download the monthly closing values for 5 years into Excel. Calculate the monthly returns for Walt Disney Co (DIS) and the market index. Using the regression function in Excel, regress the stock return on the market index return. (ii) Compare and contrast the stock beta you estimated with two other sources (e.g. Yahoo! Finance, CNBC, etc.).