Question
Download the monthly price data for the Wells Fargo (WFC) from Finance.Yahoo.com. (for the period of Jan 1, 2000 to Feb 1, 2017) 1. Create
Download the monthly price data for the Wells Fargo (WFC) from Finance.Yahoo.com. (for the period of Jan 1, 2000 to Feb 1, 2017) 1. Create a returns scatter-plot (the way we did in the class) and calculate the beta of the company for the entire time period. To calculate market returns use SP500 (ticker is ^GSPC in Finance.Yahoo.com). (10 points) 2. Now calculate a time-varying beta by splitting your data to 3 periods (2000-2005, 2006-2011, 2012-2017) and creating scatter-plots for each time period separately. (15 points) 3. What do you conclude from observing values for beta over time? (5 points)
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