Question: Directions: You must submit two files: (1) A pdf file with short answers to each question, and (2) an excel file with the analysis. Solutions
Directions: You must submit two files: (1) A pdf file with short answers to each question, and (2) an excel file with the analysis. Solutions to questions (b) and (c) should include snapshots from the excel file with the relevant chart/tables. Year 2022 2021 2020 2019 2018 Stock A 24.7% -4.2% 62.8% 2.9% 61.0% Stock B -1.1% 13.2% 10.0% -0.4% 11.7% Index 32.8% 1.2% 34.9% 14.8% 19.0% a. Find the mean, standard deviation, and the coefficient of variation of each stock and the index returns. b. Using Excel's regression feature, draw the regression lines for each stock with the index returns to determine which of the two stocks has positive or negative beta. c. Show the regression output to verify the precise value of the beta of each stock.
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