Berk_DeMarzo. Problem 12-11 (Excel) V.6

Project Description:

In this problem, you will calculate the betas of two stocks based on their monthly returns and the monthly returns of the market (represented by the S&P 500 index).

Instructions:

For the purpose of grading the project you are required to perform the following tasks:

Step	Instructions	Points Possible
1	Start Excel. Download and open the workbook named: Berk_DeMarzo_Problem_12-11_Start.	0.000
2	You will calculate the beta of the Nike stock by using the function SLOPE. In cell D6, by using the function SLOPE and cell references, calculate the beta of the Nike stock. Do not use absolute cell references. Hint: Use the excess return for Nike stock as the known ys and the excess return of the S&P 500 as the known xs.	1.000
3	You will calculate the beta of the Dell stock by using the function SLOPE. In cell D7, by using the function SLOPE and cell references, calculate the beta of the Dell stock. Do not use absolute cell references. Hint: Use the excess return for Dell stock as the known ys and the excess return of the S&P 500 as the known xs.	1.000
4	Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed.	0.000
	Total Points	2.000