Question
calculate the 3-year (36 months of data) and 5-year (60 months of data) betas for both Coca-Cola Co (KO) and Amazon (AMZN) based on monthly
calculate the 3-year (36 months of data) and 5-year (60 months of data) betas for both Coca-Cola Co (KO) and Amazon (AMZN) based on monthly data. To receive credit for the project, students must submit through MOODLE an excel spreadsheet with the return data for both stocks, the data downloaded from the Ken French Data website1 , and the calculated betas for each. Students may choose to use either linear regression or the covariance/variance relationship to calculate the betas. The time intervals for the beta calculations should be from September 2016 to August 2020 (5-year) and September 2018 to August 2020 (3-year). The submission should be as follows:
Sheet 1: Summary of Answers (beta for Coca-Cola and Amazon)
Sheet 2: Data used for Coca-Cola Co. with matched market data
Sheet 3: Data used for Amazon with matched market data Additional Sheets should be added if regression is used to determine beta.
Each of the sheets should have an indication of which beta is being calculated (i.e. KO3yr, KO5yr, AMZN3yr, AMZN5yr).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started