11. In the accompanying spreadsheet, Ive given you five years of close prices for Amazon and the Vanguard Index 500 Fund, which well use as a proxy for the S&P 500.

1. Compute the arithmetic average returns (you have to compute returns from the prices), variance and standard deviation for both Amazon and the S&P 500 data.

2. Estimate Amazons beta using Excel.

3. Compare your estimate of beta with the one provided by Yahoo Finance.

4. In words, explain what a stocks beta measures.

5. 

S&P 500 Date 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/2016 10/1/2016 11/1/2016 12/1/2016 1/1/2017 2/1/2017 3/1/2017 4/1/2017 5/1/2017 6/1/2017 711/2017 8/1/2017 9/1/2017 10/1/2017 11/1/2017 12/1/2017 1/1/2018 2/1/2018 3/1/2018 4/1/2018 5/1/2018 6/1/2018 7/1/2018 8/1/2018 9/1/2018 10/1/2018 11/1/2018 12/1/2018 1/1/2019 2/1/2019 3/1/2019 4/1/2019 5/1/2019 6/1/2019 7/1/2019 8/1/2019 9/1/2019 10/1/2019 11/1/2019 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2021 2/1/2021 3/1/2021 4/1/2021 AMZN 722.789978 715.619995 758.809998 769.159973 837.309998 789.820007 750.570007 749.869995 823.479980 845.039978 886.539978 924.989990 994.619995 968.000000 987.780029 980.599976 961.349976 1105.280029 1176.750000 1169.469971 1450.890015 1512.449951 1447.339966 1566.130005 1629.619995 1699.800049 1777.439941 2012.709961 2003.000000 1598.010010 1690.170044 1501.969971 1718.729980 1639.829956 1780.750000 1926.520020 1775.069946 1893.630005 1866.780029 1776.290039 1735.910034 1776.660034 1800.800049 1847.839966 2008.719971 1883.750000 1949.719971 2474.000000 2442.370117 2758.820068 3164.679932 3450.959961 3148.729980 3036.149902 3168.040039 3256.929932 3206.199951 3092.929932 3094.080078 3409.000000 194.100006 193.669998 200.789993 201.050003 200.210007 196.539993 203.809998 206.570007 210.460007 218.800003 218.050003 220.270004 223.339996 223.750000 228.320007 228.990005 232.570007 237.960007 245.240005 246.820007 260.920013 251.270004 243.809998 244.720001 250.580002 250.990005 260.299988 268.750000 269.089996 250.660004 255.740005 231.440002 249.960007 257.959991 261.559998 272.130005 254.809998 271.410004 275.279999 270.899994 274.709991 280.630005 290.790009 298.160004 298.010010 273.450012 238.570007 269.140015 281.940002 286.119995 302.220001 324.589996 310.329987 302.040009 335.070007 346.600006 343.059998 352.519989 366.730011 386.799988 S&P 500 Date 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/2016 10/1/2016 11/1/2016 12/1/2016 1/1/2017 2/1/2017 3/1/2017 4/1/2017 5/1/2017 6/1/2017 711/2017 8/1/2017 9/1/2017 10/1/2017 11/1/2017 12/1/2017 1/1/2018 2/1/2018 3/1/2018 4/1/2018 5/1/2018 6/1/2018 7/1/2018 8/1/2018 9/1/2018 10/1/2018 11/1/2018 12/1/2018 1/1/2019 2/1/2019 3/1/2019 4/1/2019 5/1/2019 6/1/2019 7/1/2019 8/1/2019 9/1/2019 10/1/2019 11/1/2019 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2021 2/1/2021 3/1/2021 4/1/2021 AMZN 722.789978 715.619995 758.809998 769.159973 837.309998 789.820007 750.570007 749.869995 823.479980 845.039978 886.539978 924.989990 994.619995 968.000000 987.780029 980.599976 961.349976 1105.280029 1176.750000 1169.469971 1450.890015 1512.449951 1447.339966 1566.130005 1629.619995 1699.800049 1777.439941 2012.709961 2003.000000 1598.010010 1690.170044 1501.969971 1718.729980 1639.829956 1780.750000 1926.520020 1775.069946 1893.630005 1866.780029 1776.290039 1735.910034 1776.660034 1800.800049 1847.839966 2008.719971 1883.750000 1949.719971 2474.000000 2442.370117 2758.820068 3164.679932 3450.959961 3148.729980 3036.149902 3168.040039 3256.929932 3206.199951 3092.929932 3094.080078 3409.000000 194.100006 193.669998 200.789993 201.050003 200.210007 196.539993 203.809998 206.570007 210.460007 218.800003 218.050003 220.270004 223.339996 223.750000 228.320007 228.990005 232.570007 237.960007 245.240005 246.820007 260.920013 251.270004 243.809998 244.720001 250.580002 250.990005 260.299988 268.750000 269.089996 250.660004 255.740005 231.440002 249.960007 257.959991 261.559998 272.130005 254.809998 271.410004 275.279999 270.899994 274.709991 280.630005 290.790009 298.160004 298.010010 273.450012 238.570007 269.140015 281.940002 286.119995 302.220001 324.589996 310.329987 302.040009 335.070007 346.600006 343.059998 352.519989 366.730011 386.799988