Refer to the discussion of beta values and market models in Problem 13.49 on page 513. The S&P 500 Index tracks the overall movement of the stock market by considering the stock prices of 500 large corporations. The file StockPrices2016 contains 2016 weekly data for the S&P 500 and three companies. The following variables are included:

WEEK—Week ending on date given

S&P—Weekly closing value for the S&P 500 Index

GE—Weekly closing stock price for General Electric

DISCA—Weekly closing stock price for Discovery Communications

GOOG—Weekly closing stock price for Google

Source: Data extracted from finance.yahoo.com, June 11, 2017.

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.