Procedure

1) Open file in Excel.

2) Calculate the % returns for Winnebago, Disney, and the S&P 500. The formula for percentage change is (This Month Last Month)/Last Month. For example, assuming the stock price is in column B and row 2 contains your first observed price, the formula for C3 should be =(b3-b2)/b2. Note that you will not have a return for the first month as you don't have a price for Last Month. Once you enter the formula for the first return (cell C3 in the example below), you do not have to retype it for each cell. Instead copy and paste down the column. Then, copy the entire column and paste it under Disney and the S&P 500 (start pasting at E3 and G3 in the example below). The formula will automatically update itself for each cell.

3) Once you have calculated the % Returns for each day, you must calculate the standard deviation of Winnebago % Return, the standard deviation of Disneys % Return, and the standard deviation of the S&P 500 % Return. Then, you must calculate the correlation between Winnebago and the S&P 500 and the correlation between Disney and the S&P 500. Make sure you use the % Return columns and NOT the Price columns.

A) Click on the cell to the right of St. Dev. Winnebago. Then, click on the insert function (f_x) from the toolbar. When you click on it, it will open a dialog box. Select Statistical. This will allow you to choose from a number of statistical formulas. Scroll down the list of selections until you get STDEV.S (in the function name window of the dialog box this is STDEV if you are using an earlier version of Excel). Highlight STDEV.S and select OK. Now, highlight the entire column of % Return for Winnebago (in our example below -- C3 through C59). Then click on OK.

B) Repeat A for the St. Deviation of Disney and S&P 500.

C) Click on the cell to the right of Correlation Winnebago/S&P. Then, click on the insert function. Select Statistically and choose CORREL. Highlight the % Return column for Winnebago in the box labeled Array 1 (C3 through C59). Tab down to Array 2 and highlight the % Return column for the S&P 500 (G3 through G59). Click on OK.

D) Repeat C to calculate the correlation between Disney/S&P

4) Calculate beta for each stock. Remember that Beta is equal to (St. Dev. Stock)(Correlation)/(St. Dev. S&P)

	A	B	C	D	E	F	G
1	Date	Winnebago	% Return	Disney	% Return	S&P 500 ETF	% Return
2	12/1/2015	18.68		98.51		184.79
3	1/1/2016	16.53	-11.51%	90.40	-8.23%	176.64	-4.41%
4	2/1/2016	17.68	6.96%	90.12	-0.31%	176.49	-0.08%
	.	.	.	.	.	.	.
	.	.	.	.	.	.	.
57	9/1/2020	51.56	-4.27%	124.08	-5.91%	333.55	-4.13%
58
59	St. Dev. Winnebago
60	St. Dev. Disney
61	St. Dev. S&P 500
62	Corr Winnebago/S&P
63	Corr Disney/S&P
64	Beta Winnebago
65	Beta Disney