Question: Please answer the following end-of-chapter 7 problems: ( 15 pts per question) 1. Problem 20-20. Go to Connect and link to Chapter 7 materiaks, where

materiaks, where you will find a spreadsheet with monthly retums for GM,

Please answer the following end-of-chapter 7 problems: ( 15 pts per question) 1. Problem 20-20. Go to Connect and link to Chapter 7 materiaks, where you will find a spreadsheet with monthly retums for GM, Ford, Toyota. the S\&P SO0, and Treasury bills. a. Estimate the index model for each firm over the full five-year period. Compare the betas of each firm. b. Now estimate the betas for each firm using only the first two years of the sample and then using only the last two years. How stable are the beta estimates obtained from these shorter subperiods? Attachments: Ctonotor 07 Problemin 20 vigs \& \begin{tabular}{rrrrrr} 201712 & 0.1000 & 0.0098 & 0.0399 & 0.0024 & 0.0066 \\ 201801 & 0.1083 & 0.0562 & 0.0346 & 0.0993 & 0.0845 \\ 201802 & 0.1150 & 0.0389 & 0.0722 & 0.0328 & 0.0241 \\ 201803 & 0.1367 & 0.0269 & 0.0668 & 0.0443 & 0.0314 \\ 201804 & 0.1383 & 0.0027 & 0.0110 & 0.0280 & 0.0047 \\ 201805 & 0.1425 & 0.0216 & 0.1622 & 0.0276 & 0.0230 \\ 201806 & 0.1508 & 0.0048 & 0.0684 & 0.0416 & 0.0066 \\ 201807 & 0.1575 & 0.0360 & 0.0378 & 0.0795 & 0.0235 \\ 201808 & 0.1617 & 0.0303 & 0.0491 & 0.0558 & 0.0589 \\ 201809 & 0.1700 & 0.0043 & 0.0555 & 0.0243 & 0.0022 \\ 201810 & 0.1808 & 0.0694 & 0.0867 & 0.0486 & 0.0587 \\ 201811 & 0.1867 & 0.0179 & 0.0372 & 0.0147 & 0.0378 \\ 201812 & 0.1975 & 0.0918 & 0.1086 & 0.1870 & 0.0445 \\ 201901 & 0.2000 & 0.0787 & 0.1665 & 0.1699 & 0.0611 \\ 201902 & 0.2025 & 0.0297 & 0.0118 & 0.0034 & 0.0173 \\ 201903 & 0.2042 & 0.0179 & 0.0507 & 0.0011 & 0.0250 \\ 201904 & 0.2025 & 0.0393 & 0.0499 & 0.2073 & 0.0473 \\ 201905 & 0.2000 & 0.0658 & 0.1440 & 0.0890 & 0.0487 \\ 201906 & 0.1850 & 0.0689 & 0.1671 & 0.0746 & 0.0545 \\ 201907 & 0.1792 & 0.0131 & 0.0470 & 0.0538 & 0.0408 \\ 201908 & 0.1725 & 0.0181 & 0.0806 & 0.0378 & 0.0122 \\ 201909 & 0.1658 & 0.0172 & 0.0208 & 0.0011 & 0.0295 \\ 201910 & 0.1442 & 0.0204 & 0.0085 & 0.0459 & 0.0302 \\ 201911 & 0.1317 & 0.0340 & 0.0312 & 0.0547 & 0.0120 \\ 201912 & 0.1292 & 0.0286 & 0.0272 & 0.0265 & 0.0024 \\ \hline \end{tabular} Please answer the following end-of-chapter 7 problems: ( 15 pts per question) 1. Problem 20-20. Go to Connect and link to Chapter 7 materiaks, where you will find a spreadsheet with monthly retums for GM, Ford, Toyota. the S\&P SO0, and Treasury bills. a. Estimate the index model for each firm over the full five-year period. Compare the betas of each firm. b. Now estimate the betas for each firm using only the first two years of the sample and then using only the last two years. How stable are the beta estimates obtained from these shorter subperiods? Attachments: Ctonotor 07 Problemin 20 vigs \& \begin{tabular}{rrrrrr} 201712 & 0.1000 & 0.0098 & 0.0399 & 0.0024 & 0.0066 \\ 201801 & 0.1083 & 0.0562 & 0.0346 & 0.0993 & 0.0845 \\ 201802 & 0.1150 & 0.0389 & 0.0722 & 0.0328 & 0.0241 \\ 201803 & 0.1367 & 0.0269 & 0.0668 & 0.0443 & 0.0314 \\ 201804 & 0.1383 & 0.0027 & 0.0110 & 0.0280 & 0.0047 \\ 201805 & 0.1425 & 0.0216 & 0.1622 & 0.0276 & 0.0230 \\ 201806 & 0.1508 & 0.0048 & 0.0684 & 0.0416 & 0.0066 \\ 201807 & 0.1575 & 0.0360 & 0.0378 & 0.0795 & 0.0235 \\ 201808 & 0.1617 & 0.0303 & 0.0491 & 0.0558 & 0.0589 \\ 201809 & 0.1700 & 0.0043 & 0.0555 & 0.0243 & 0.0022 \\ 201810 & 0.1808 & 0.0694 & 0.0867 & 0.0486 & 0.0587 \\ 201811 & 0.1867 & 0.0179 & 0.0372 & 0.0147 & 0.0378 \\ 201812 & 0.1975 & 0.0918 & 0.1086 & 0.1870 & 0.0445 \\ 201901 & 0.2000 & 0.0787 & 0.1665 & 0.1699 & 0.0611 \\ 201902 & 0.2025 & 0.0297 & 0.0118 & 0.0034 & 0.0173 \\ 201903 & 0.2042 & 0.0179 & 0.0507 & 0.0011 & 0.0250 \\ 201904 & 0.2025 & 0.0393 & 0.0499 & 0.2073 & 0.0473 \\ 201905 & 0.2000 & 0.0658 & 0.1440 & 0.0890 & 0.0487 \\ 201906 & 0.1850 & 0.0689 & 0.1671 & 0.0746 & 0.0545 \\ 201907 & 0.1792 & 0.0131 & 0.0470 & 0.0538 & 0.0408 \\ 201908 & 0.1725 & 0.0181 & 0.0806 & 0.0378 & 0.0122 \\ 201909 & 0.1658 & 0.0172 & 0.0208 & 0.0011 & 0.0295 \\ 201910 & 0.1442 & 0.0204 & 0.0085 & 0.0459 & 0.0302 \\ 201911 & 0.1317 & 0.0340 & 0.0312 & 0.0547 & 0.0120 \\ 201912 & 0.1292 & 0.0286 & 0.0272 & 0.0265 & 0.0024 \\ \hline \end{tabular}

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