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Choose a company you are interested in . Download monthly historical stock prices for the last 5 years for the company you chose and SPY
Choose a company you are interested in
Download monthly historical stock prices for the last years for the company you chose and SPY the ETF that tracks the S&P
For your company and SPY calculate monthly returns not excess returns
Create a scatterplot of the monthly returns.
Include a linear regression fit line.
According to your analysis, what is your company's stock beta?
Report your company's stock beta from other sources.
If the beta that you estimated is NOT within about of the betas you found from other sources, you likely made a mistake in your calculation.
Why might the reported betas be different from the one that you calculated?
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