1. (12 pts)There are two stocks listed in STOCK.xlxs.Facebook (FB)andNike (NKE)Based upon their rate of returns(X_t-X_t-1 )/X_t-1which stock is riskier?Why?

Save your Excel or JMP, as STOCK#6.xlsx or STOCK#6.JMP and attach to the your submission of your exam.

1. ( 12 pts) Using the S&P 500 as an index for the market estimate the Beta () ofFacebook (FB).Use the data provided in STOCK.xlsx.

Recall : The model used to calculate a stock is:

R_j,t = + R_m,t + _t

Where:R_j,tis the rate of return for the jth stock in time period t

R_m,tis the market rate of return in time period t

_tis the error term in time period t

and are constants.

=R²=

Save your Excel or JMP, as STOCK#7.xlsx or STOCK#7.JMP file when you submit and attach to the your submission of your exam.

Date NKE FB SP500 4/1/2016 55.74 117.58 2,065.30 5/1/2016 52.22 118.81 2,096.95 6/1/2016 52.20 114.28 2,098.86 7/1/2016 52.64 123.94 2,173.60 8/1/2016 54.67 126.12 2,170.95 9/1/2016 49.94 128.27 2,168.27 10/1/2016 47.73 130.99 2,126.15 11/1/2016 47.62 118.42 2,198.81 12/1/2016 48.34 115.05 2,238.83 1/1/2017 50.49 130.32 2,278.87 2/1/2017 54.56 135.54 2,363.64 3/1/2017 53.20 142.05 2,362.72 4/1/2017 53.05 150.25 2,384.20 5/1/2017 50.74 151.46 2,411.80 6/1/2017 56.49 150.98 2,423.41 7/1/2017 56.73 169.25 2,470.30 8/1/2017 50.74 171.97 2,471.65 9/1/2017 49.99 170.87 2,519.36 10/1/2017 53.01 180.06 2,575.26 11/1/2017 58.25 177.18 2,647.58 12/1/2017 60.30 176.46 2,673.61 1/1/2018 65.99 186.89 2,823.81 2/1/2018 64.84 178.32 2,713.83 3/1/2018 64.26 159.79 2,640.87 4/1/2018 66.35 172.00 2,648.05 5/1/2018 69.66 191.78 2,705.27 6/1/2018 77.30 194.32 2,718.37 7/1/2018 74.83 172.58 2,816.29 8/1/2018 79.97 175.73 2,901.52 9/1/2018 82.63 164.46 2,913.98 10/1/2018 73.19 151.79 2,711.74 11/1/2018 73.26 140.61 2,760.17 12/1/2018 72.52 131.09 2,506.85 1/1/2019 80.09 166.69 2,704.10 2/1/2019 83.86 161.45 2,784.49 3/1/2019 82.37 166.69 2,834.40 4/1/2019 86.14 193.40 2,945.83 5/1/2019 75.65 177.47 2,752.06 6/1/2019 82.56 193.00 2,941.76 7/1/2019 84.61 194.23 2,980.38 8/1/2019 83.10 185.67 2,926.46 9/1/2019 92.60 178.08 2,976.74 10/1/2019 88.29 191.65 3,037.56 11/1/2019 92.18 201.64 3,140.98 12/1/2019 100.15 205.25 3,230.78 1/1/2020 95.20 201.91 3,225.52 2/1/2020 88.36 192.47 2,954.22 3/1/2020 82.02 166.80 2,584.59 4/1/2020 86.42 204.71 2,912.43 5/1/2020 97.72 225.09 3,044.31 6/1/2020 97.44 227.07 3,100.29 7/1/2020 97.00 253.67 3,271.12 8/1/2020 111.19 293.20 3,500.31 9/1/2020 125.03 261.90 3,363.00 10/1/2020 119.60 263.11 3,269.96 11/1/2020 134.16 276.97 3,621.63 12/1/2020 140.90 273.16 3,756.07 1/1/2021 133.32 258.33 3,714.24 2/1/2021 134.51 257.62 3,811.15 3/1/2021 133.35 264.28 3,841.94 3/5/2021 133.35 264.28 3,841.94