The beta of a stock is simply the slope of the best-fitting line used to predict the
Question:
The beta of a stock is simply the slope of the best-fitting line used to predict the monthly return on the stock from the monthly return given in the Standard & Poor’s (S&P) 500 index. A beta that is larger than 1 indicates that a stock is more cyclical than the market, whereas a beta of less than 1 indicates that a stock is less cyclical than the market. The file Betaresampling.xlsx contains more than 12 years of monthly returns on Microsoft (MSFT), Pfizer (PFE), other stocks, and the S&P index. Use this data to determine the probability that Microsoft has a lower beta than Pfizer. You will need to use the SLOPE function to estimate the beta for each iteration of resampling.
Step by Step Answer:
Microsoft Excel Data Analysis And Business Modeling
ISBN: 9780137613663
7th Edition
Authors: Wayne Winston