In most finance text books, you are told that all you need to do to estimate the beta for a stock is to run a regression of returns on the stock against returns on the market index. The slope of the line is, of course, the beta. I have taken one company, GameStop, and estimated its beta against S&P500 . The result of the regression is shown below. Questions: (Each 2 points)

1. If you are analyzing GameStop and were required to use this regression betas, would you? If not, why not? What would you use instead?
2. During the period of the regression, GameStop had incredible volatility but its beta does not seem to reflect it. Explain why.