(1) Find the monthly return of Amazon and Nasdaq.
(2) Run a liner regression to estimate beta of Amazon.
(3) Use Corrl (Amazon return, Nasdaq return) x STDEV(Standard deviation of Amazon return)/ STDEV (standard deviation of Nasdaq return) to find beta of Amazon.
(4) Use the security market line or capital asset pricing model to find the required rate of return of Amazon, assuming market return is 12% and risk free rate is 3%.
Date amazon price nasdaq closing price 5/1/2016 722.789978 4948.049805 6/1/2016 715.619995 4842.669922 7/1/2016 758.809998 5162.129883 8/1/2016 769.159973 5213.220215 9/1/2016 837.309998 5312 10/1/2016 789.820007 5189.140137 11/1/2016 750.570007 5323.680176 12/1/2016 749.869995 5383.120117 1/1/2017 823.47998 5614.790039 2/1/2017 845.039978 5825.439941 3/1/2017 886.539978 5911.740234 4/1/2017 924.98999 6047.609863 5/1/2017 994.619995 6198.52002 6/1/2017 968 6140.419922 7/1/2017 987.780029 6348.120117 8/1/2017 980.599976 6428.660156 9/1/2017 961.349976 6495.959961 10/1/2017 1105.280029 6727.669922 11/1/2017 1176.75 6873.970215 12/1/2017 1169.469971 6903.390137 1/1/2018 1450.890015 7411.47998 2/1/2018 1512.449951 7273.009766 3/1/2018 1447.339966 7063.450195 4/1/2018 1566.130005 7066.27002 5/1/2018 1629.619995 7442.120117 6/1/2018 1699.800049 7510.299805 7/1/2018 1777.439941 7671.790039 8/1/2018 2012.709961 8109.540039 9/1/2018 2003 8046.350098 10/1/2018 1598.01001 7305.899902 11/1/2018 1690.170044 7330.540039 12/1/2018 1501.969971 6635.279785 1/1/2019 1718.72998 7281.740234 2/1/2019 1639.829956 7532.529785 3/1/2019 1780.75 7729.319824 4/1/2019 1926.52002 8095.390137 3/1/2019 1780.75 4/1/2019 1926.52002 5/1/2019 1775.069946 6/1/2019 1893.630005 7/1/2019 1866.780029 8/1/2019 1776.290039 9/1/2019 1735.910034 10/1/2019 1776.660034 11/1/2019 1800.800049 12/1/2019 1847.839966 1/1/2020 2008.719971 2/1/2020 1883.75 3/1/2020 1949.719971 4/1/2020 2474 5/1/2020 2442.370117 6/1/2020 2758.820068 7/1/2020 3164.679932 8/1/2020 3450.959961 9/1/2020 3148.72998 10/1/2020 3036.149902 11/1/2020 3168.040039 12/1/2020 3256.929932 1/1/2021 3206.199951 2/1/2021 3092.929932 3/1/2021 3094.080078 4/1/2021 3279.389893 7729.319824 8095.390137 7453.149902 8006.240234 8175.419922 7962.879883 7999.339844 8292.360352 8665.469727 8972.599609 9150.94043 8567.370117 7700.100098 8889.549805 9489.870117 10058.76953 10745.26953 11775.45996 11167.50977 10911.58984 12198.74023 12888.28027 13070.69043 13192.34961 13246.87012 13698.37988 Date amazon price nasdaq closing price 5/1/2016 722.789978 4948.049805 6/1/2016 715.619995 4842.669922 7/1/2016 758.809998 5162.129883 8/1/2016 769.159973 5213.220215 9/1/2016 837.309998 5312 10/1/2016 789.820007 5189.140137 11/1/2016 750.570007 5323.680176 12/1/2016 749.869995 5383.120117 1/1/2017 823.47998 5614.790039 2/1/2017 845.039978 5825.439941 3/1/2017 886.539978 5911.740234 4/1/2017 924.98999 6047.609863 5/1/2017 994.619995 6198.52002 6/1/2017 968 6140.419922 7/1/2017 987.780029 6348.120117 8/1/2017 980.599976 6428.660156 9/1/2017 961.349976 6495.959961 10/1/2017 1105.280029 6727.669922 11/1/2017 1176.75 6873.970215 12/1/2017 1169.469971 6903.390137 1/1/2018 1450.890015 7411.47998 2/1/2018 1512.449951 7273.009766 3/1/2018 1447.339966 7063.450195 4/1/2018 1566.130005 7066.27002 5/1/2018 1629.619995 7442.120117 6/1/2018 1699.800049 7510.299805 7/1/2018 1777.439941 7671.790039 8/1/2018 2012.709961 8109.540039 9/1/2018 2003 8046.350098 10/1/2018 1598.01001 7305.899902 11/1/2018 1690.170044 7330.540039 12/1/2018 1501.969971 6635.279785 1/1/2019 1718.72998 7281.740234 2/1/2019 1639.829956 7532.529785 3/1/2019 1780.75 7729.319824 4/1/2019 1926.52002 8095.390137 3/1/2019 1780.75 4/1/2019 1926.52002 5/1/2019 1775.069946 6/1/2019 1893.630005 7/1/2019 1866.780029 8/1/2019 1776.290039 9/1/2019 1735.910034 10/1/2019 1776.660034 11/1/2019 1800.800049 12/1/2019 1847.839966 1/1/2020 2008.719971 2/1/2020 1883.75 3/1/2020 1949.719971 4/1/2020 2474 5/1/2020 2442.370117 6/1/2020 2758.820068 7/1/2020 3164.679932 8/1/2020 3450.959961 9/1/2020 3148.72998 10/1/2020 3036.149902 11/1/2020 3168.040039 12/1/2020 3256.929932 1/1/2021 3206.199951 2/1/2021 3092.929932 3/1/2021 3094.080078 4/1/2021 3279.389893 7729.319824 8095.390137 7453.149902 8006.240234 8175.419922 7962.879883 7999.339844 8292.360352 8665.469727 8972.599609 9150.94043 8567.370117 7700.100098 8889.549805 9489.870117 10058.76953 10745.26953 11775.45996 11167.50977 10911.58984 12198.74023 12888.28027 13070.69043 13192.34961 13246.87012 13698.37988
