Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

141 Calculate real world return_ risk_ and beta for Microsoft Corporation iticker : `SFT!. & . Go to Yahoo Finance . hines`finance Yahoo. com Q

image text in transcribed
image text in transcribed
141 Calculate real world return_ risk_ and beta for Microsoft Corporation iticker : `SFT!. & . Go to Yahoo Finance . hines`finance Yahoo. com Q . In the" Quote Lockup" box , TYPE " MSFT " and select Microsoft What's the Beta for this stuck on the summary screen ?" HERE : U . Click on "Historical Data"\\ E . Change the Time Period to" S'" ilast 5 years; and the Frequency to" Monthly " , then click " Rocky" How click "Download Data " and"Oven. " which should bring it into 15 Excel E . Hatice the data is andered from newEst to oldest , so You'll need to highlight all the data Iincluding the column labels!_ USE the " Data " tab to Sort" the data !` " Late," and then hit "CIK*"\\ Label anew column as " Return " _ Lising the Adjusted Closing prices (which accounts for dividends and splits ;, calculate & discretE monthly return ilner_ alalialdi for each month . Hate you will not have one for Feb Luiz . If you point to cell: You can drag all the way down to Feb zuli . "You can multiply each return by 105 if you want to see a raw percentage . 1 . Calculate the mean monthly return fuse the"AVERAGE " function) . the standard deviation of month!* returns !" STUEY" functions, and count the number of months you've used !' COUNT" function! . Put those numbers in the respective boxes to the right HOW WE'll move to beta . So do NOT Erase Your Returns* Mean monthly return ." column from MSFT ! K . `REPEAT STEPS Go through A . but instead of using ^5FT search for " " ESFL," which is the SEE Sad index` Sed Deviation of monthly returns ! a proxy for the Entire market which had higher average monthly,' returns over the past 5 years. the SOF Sad or MSFT ? Which had higher risk . SEP SOO or MSFT ?" Count of monthly' returns M . How calculate the correlation between MSFT and " COPE by using the"CORREL" function and highlighting both columns* of returns U From Your reading , beta is calculated Ly` :` Correlation ! ` SFT. " CSRC!" StdeviMS F TI . Story !" CAFE! Calculated beta ! Put Your answer for bets in the box to the right . How can it differ from the value in the first box ?" If you want to check Your answer for beta , under the Data tab , select the Data Analysis tool , choose regression , colect MSFT returns for the " variable and " LIFE_ returns for the*" variable _ In Your results you will see that the coefficient on the* variable matches your beta calculation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappett

23rd edition

1259536351, 978-1259536359

Students also viewed these Finance questions