The S&P 500 Index tracks the overall movement of the stock market by considering the stock prices of 500 large corporations. The file StockPrice2011 contains 2011 weekly data for the S&P 500 and three companies. The following variables are included:
a. Estimate the market model for GE.
b. Interpret the beta value for GE.
c. Repeat (a) and (b) for Discovery Communications.
d. Repeat (a) and (b) for Google.
e. Write a brief summary of your findings.
For Information: Problem 13.49