1) Download the monthly adj. closing prices for Intel Corporation (symbol: INTC) and that for S&P 500 index (symbol: "GSPC) from Yahoo Finance for period January 1, 2010 to December 31, 2019. 2) Use the following formula to calculate monthly rate of returns for stock of Intel and S&P 500 index: 1-1 P.-P. P. where r, is the monthly rate of return for month t, P, is the adj. closing price for month t, and P-1 is the adj. closing price for the prior month. 3) Use the market model to estimate beta of Intel's stock by using the data of the sample period of January 1, 2010 to December 31, 2019. The market model is shown as follows: r=,+Br+E,, where ri is the monthly rate of return of Intel's stock, au is the monthly rate of return of S&P 500 index, and B; is the beta of Intel's stock. 4) Repeat steps 2) and 3) to estimate betas of Intel's stock based on two sub-sample periods: January 1, 2010 - December 31, 2014 and January 1, 2015 - December 31, 2019. 5) You can use any software, e.g. Excel, Minitab, to run the market model a single variate regression model to estimate the beta of the stock of Intel. 6) Compare the betas you estimate based on the whole sample period and two sub-sample periods and discuss the meaning of betas that you estimate and the difference between the estimated values. 1) Download the monthly adj. closing prices for Intel Corporation (symbol: INTC) and that for S&P 500 index (symbol: "GSPC) from Yahoo Finance for period January 1, 2010 to December 31, 2019. 2) Use the following formula to calculate monthly rate of returns for stock of Intel and S&P 500 index: 1-1 P.-P. P. where r, is the monthly rate of return for month t, P, is the adj. closing price for month t, and P-1 is the adj. closing price for the prior month. 3) Use the market model to estimate beta of Intel's stock by using the data of the sample period of January 1, 2010 to December 31, 2019. The market model is shown as follows: r=,+Br+E,, where ri is the monthly rate of return of Intel's stock, au is the monthly rate of return of S&P 500 index, and B; is the beta of Intel's stock. 4) Repeat steps 2) and 3) to estimate betas of Intel's stock based on two sub-sample periods: January 1, 2010 - December 31, 2014 and January 1, 2015 - December 31, 2019. 5) You can use any software, e.g. Excel, Minitab, to run the market model a single variate regression model to estimate the beta of the stock of Intel. 6) Compare the betas you estimate based on the whole sample period and two sub-sample periods and discuss the meaning of betas that you estimate and the difference between the estimated values
