Data:

3-month Treasury Bill Rate (Risk-free rate): Go to Fed website http://research.stlouisfed.org/fred2/series/TB3MS

Colgate-Palmolive Stock Price: Go to finance.yahoo.com and search for Colgate- Palmolive (Ticker symbol: CL). Click on the Historical Data on the menu.

S&P 500 Price: Go to finance.yahoo.com Questions:

1- a. Create a line graph in excel where you put monthly date on x-axis and Colgate- Palmolive stock return and S&P 500 return on y-axis for the recent 60 months. b. Compute average and standard deviation for risk-free rate, S&P 500 return and Colgate-Palmolive stock return using recent 60 months.

2- Estimate the beta for Colgate-Palmolive using regression function in Excel. Provide regression output in your answer and highlight beta coefficient. Comment on Colgate-Palmolives systematic risk.

3- Rework the previous questions (both 1 and 2) using the last 36 months. How does this answer compare to what you calculated previously?

4- Compare your beta for Colgate-Palmolive to the beta you found on finance.yahoo.com and www.reuters.com/finance. How similar are they?