PLEASE USE EXCEL TO ANSWER Data CaSe In the earlier data case for this chapter, you relied on the beta PLEestimate for Walt Disney provided by

Yahoo! Finance. You decide to dig deeper and estimate Disney's equity beta on your own.

Get the monthly adjusted closing prices for Disney and the S&P $500$ from Yahoo! Finance

$($

finance.yahoo.com$)$ using the same time period and procedure as in the Chapter $10$ Data Case.

$($The symbol for the S&P $500$ in Yahoo! Finance is ${?}^{{?}^{{?}^{?}}}$ GSPC$.)$

Get the three$-$month Treasury Bill rate from the Federal Reserve Web site

selections:

Series Type$-$Selected Interest Rates

Instrument$-$U$.$S$.$ government securities$/$Treasury bills $($secondary market$)$

Maturity$-3-$month

Frequency$-$Monthly

Click Go to Package and then Format Package. Select Dates$-$From $2013$ April to $2018$ March,

and select File Type$-$Excel. Click Go to download and Download file. Then open and save these

rates to an Excel file.

To convert the Treasury Bill rate to a monthly rate, take the yield and divide it by $100$ to convert it

to a decimal. Then divide the decimal by $12.$ The resulting rate will be the monthly risk$-$free return

in the CAPM $($you may need to re$-$sort the dates to match the Yahoo! data$).$

Create separate return columns that compute the excess returns for Walt Disney and the S&P

Recall that the excess return is the actual monthly return minus the risk$-$free rate.

Compute the beta of Disney stuck based un Ey$.12\mathrm{.}5$ from this chapter, using the SLOPE func$-$

tiun in Dxcel. Ilow does it compare with the beta eurrendy reported by Yahuo! Finarice? Why

might the results differ?

Compute Disney's alpha over this period using the IN'I'E'KC.'HiYY' tunctuon in Kixcel. How might

you interpret this alpha?