Calculate the Beta for Amazon for the calendar year 2020. Upload at least one worksheet to show your calculations. 

 

• Below are my calculations in terms of finding Beta for Amazon in the year 2020. I took the closing prices on a monthly basis and S&P 500 closing price on a monthly basis (resource is from Yahoo Finance).
• Daily Return for Amazon: (Closing Price - Previous Closing Price) / Previous Closing Price) * 100. I did the same for S&P 500 
• Next I ran a regression: Y variable is Amazon holding period return minus risk-free rate. X variable is S&P 500 holding period return minus risk-free rate. 

 

I set the risk-free rate at 1%. I'm not too sure where this information can be found. Any advice here would be great as it wasn't included in the problem. I also did a separate calculation for Covariance and Variance and got the same answer as my regression .8517 beta value

 

Please calculate beta with the closing prices provided in my worksheet 

  

Risk Free Rate Date 1/1/20 2/1/20 3/1/20 4/1/20 5/1/20 6/1/20 7/1/20 8/1/20 9/1/20 10/1/20 11/1/20 12/1/20 AMZN 1 S&P 500 122.12 137.94 158.23 172.55 157.44 151.81 158.4 162.85 AMZN Holding Period Closing Price Closing Price Return (HPR) 100.44 3,225.52 94.19 2,954.22 -6.22262047 97.49 2,584.59 3.503556641 26.8848087 123.7 2,912.43 3,044.31 -1.277283751 3,100.29 3,271.12 3,500.31 12.95447101 14.7092939 9.050116918 3,363.00 -8.756882063 3,269.96 -3.575965447 3,621.63 4.340952506 3,756.07 2.809343434 S&P 500 Holding Period Return (HPR) AMZN Excess Return S&P 500 Excess Return -8.411046901 -7.2226205 -9.4110469 -12.51193208 2.50 25.88 12.68441029 4.528177501 -2.28 1.838840328 11.95 5.510129698 13.7092939 4.5101297 7.006468732 8.05011692 6.00646873 -3.92279541 -9.7568821 -4.9227954 -2.766577461 -4.5759654 -3.7665775 10.75456581 3.34095251 9.75456581 3.712140666 1.80934343 2.71214067 -13.51 11.68 3.53 0.84 Covariance Variance Beta Daily Return for Amazon: (Closing Price - Previous Closing Price) / Previous Closing Price) * 100 47.4759576 55.7414658 0.85171706