Question
Estimate raw beta and adjusted beta () - (Please save your Excel file(s) in the format of Excel Workbook (*.xlsx)) a) Go to finance.yahoo.com, enter
Estimate raw beta and adjusted beta () - (Please save your Excel file(s) in the format of Excel Workbook (*.xlsx)) a) Go to finance.yahoo.com, enter the symbol for Best Buy (BBY), and click on Search. Click on Historical Data; then enter starting and ending dates that correspond to the most recent five years. Download five years of monthly adjusted closing prices for BBY. Calculate monthly returns for the past 5 years. (2 points) b) Repeat the process to get comparable data for the S&P 500 Index (symbol ^GSPC). Copy the data into a separate spreadsheet and sort the data from Oldest to Newest, then calculate the monthly returns for the past 5 years. If youd like, you can copy S&P 500 index return data to the same spreadsheet as Best Buy with dates and return data aligned. (2 points) c) Run regression using Data Analysis Tool with the monthly return for Best Buy as the Input Y Range and the monthly return for S&P 500 as the Input X Range. Report the beta of Best Buy. Is this a raw beta or adjusted beta? (2 points) d) What is the adjusted beta for Best Buy using Blume (1971) adjustment? (1 points)
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