Question: Please answer this question, it is the second time I post this question but they didn't give me answer? Compute the Beta of AMZN stock
Please answer this question, it is the second time I post this question but they didn't give me answer?
Compute the Beta of AMZN stock compare to the benchmark represented by the S&P500 index over 61 months.
a. Compute the monthly log returns of AMZN.
b. Compute the excess returns of AMZN by subtracting to a) the monthly return of the 10-year US Government Bond yield.
c. Compute the log returns of the S&P500 index.
d. Compute the excess returns of the S&P500 index by subtracting to c) the monthly return of the 10-year US Government Bond yield.
e. Apply an OLS by using the toolbox of Excel (Data/ Data Analysis/Regression) b) (dependent variable) versus d) (independent variable).
f. Is Bta significant ? Why ?
g. Adjust Bta, making the hypothesis that the standard error of Bta population is equal to 0.30. What is the value of Adjusted Bta ?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
