Compute the Beta for both Microsoft shares and Apple shares using the S&P 500. Statistical results from
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Compute the Beta for both Microsoft shares and Apple shares using the S&P 500.
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Statistical results from the two shares and the market Variance Standard deviation Correlation coefficient With Microsoft With Apple Figures from April 2016 to April 2017 Apple S&P 500 0,000155 0,012441 Microsoft 0,000136 0,011664 1,000000 0,297573 0,297573 1,000000 0.000040 0,006364 0,631682 0,427055 NASDAQ 0.000058 0.007631 0,700387 0.551138 Dow Industrial 0.000038 0.006161 0,569780 0.397708 Those variances, standard deviations and correlation coefficient are computed from daily returns. This method explains why those values are so small. Statistical results from the two shares and the market Variance Standard deviation Correlation coefficient With Microsoft With Apple Figures from April 2016 to April 2017 Apple S&P 500 0,000155 0,012441 Microsoft 0,000136 0,011664 1,000000 0,297573 0,297573 1,000000 0.000040 0,006364 0,631682 0,427055 NASDAQ 0.000058 0.007631 0,700387 0.551138 Dow Industrial 0.000038 0.006161 0,569780 0.397708 Those variances, standard deviations and correlation coefficient are computed from daily returns. This method explains why those values are so small.
Expert Answer:
Answer rating: 100% (QA)
To calculate the beta for a stock the following formula is generally used Beta Correlation Coefficie... View the full answer
Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
Posted Date:
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