On the Internet, go to Yahoo! Finance (or msnMoney) and download weekly price information over the past year (52 observations) for GOOG and the Nasdaq market. Then, enter this information in a spreadsheet like Table 16.6 and use these data to estimate GOOG=s beta. Describe any similarities or dissimilarities between your estimation results and the results depicted in Figure 16.8.
16.6
NQ=F Date Open High Low Close Adj Close Volume 2022-08-22 13226.500000 13226.500000 12557.500000 12620.500000 12620.500000 2970979 2022-08-29 12485.000000 12658.250000 12017.750000 12104.250000 12104.250000 3819099 2022-09-05 12110.500000 12613.750000 11921.500000 12592.500000 12592.500000 2845617 2022-09-12 12626.000000 12889.000000 11750.500000 11814.580078 11814.580078 2103179 2022-09-19 11920.000000 12140.500000 11229.000000 11376.750000 11376.750000 3746068 2022-09-26 11362.500000 11613.500000 11024.250000 11035.500000 11035.500000 4318659 2022-10-03 11030.000000 11729.750000 10890.750000 11101.500000 11101.500000 3764410 2022-10-10 11067.750000 11253.500000 10484.750000 10744.000000 10744.000000 4216621 2022-10-17 10720.000000 11431.750000 10713.000000 11358.500000 11358.500000 3785335 2022-10-24 11393.750000 11734.000000 10921.500000 11587.000000 11587.000000 3657196 2022-10-31 11592.500000 11619.000000 10636.000000 10890.250000 10890.250000 3570204 2022-11-07 10786.500000 11876.750000 10751.000000 11848.000000 11848.000000 3497035 2022-11-14 11791.000000 12118.750000 11528.250000 11708.000000 11708.000000 3170706 2022-11-21 11723.000000 11933.000000 11526.500000 11782.750000 11782.750000 1736068 2022-11-28 11731.250000 12145.000000 11465.000000 12010.250000 12010.250000 3048783 2022-12-05 12000.500000 12015.750000 11422.500000 11569.750000 11569.750000 2934764 2022-12-12 11553.000000 12229.500000 11206.500000 11327.040039 11327.040039 1807984 2022-12-19 11328.750000 11411.000000 10870.500000 11075.250000 11075.250000 3067966 2022-12-26 11104.000000 11183.750000 10758.750000 11022.250000 11022.250000 2067859 2023-01-02 11122.500000 11182.000000 10751.000000 11113.500000 11113.500000 2846468 2023-01-09 11126.500000 11619.500000 11094.000000 11608.000000 11608.000000 2942325 2023-01-16 11613.500000 11759.500000 11308.500000 11677.000000 11677.000000 2850295 2023-01-23 11676.750000 12308.500000 11604.500000 12222.250000 12222.250000 2948327 2023-01-30 12212.500000 12949.750000 11871.000000 12624.000000 12624.000000 3530415 2023-02-06 12572.000000 12818.500000 12243.250000 12346.250000 12346.250000 3083146 2023-02-13 12357.500000 12792.750000 12265.250000 12390.000000 12390.000000 3067303 2023-02-20 12380.000000 12417.750000 11923.000000 11997.000000 11997.000000 3164140 2023-02-27 12003.000000 12329.000000 11832.500000 12311.250000 12311.250000 3412104 2023-03-06 12306.250000 12486.250000 11795.000000 11840.250000 11840.250000 3618978 2023-03-13 11894.750000 12636.500000 11674.250000 12594.650391 12594.650391 2235980 2023-03-20 12690.000000 13082.000000 12525.250000 12890.250000 12890.250000 3488346 2023-03-27 12916.000000 13311.500000 12634.250000 13301.750000 13301.750000 2875021 2023-04-03 13262.000000 13348.750000 12953.250000 13170.750000 13170.750000 1755760 2023-04-10 13179.750000 13255.000000 12925.500000 13181.250000 13181.250000 2972886 2023-04-17 13212.500000 13298.750000 12982.500000 13090.500000 13090.500000 2921197 2023-04-24 13070.000000 13336.000000 12800.000000 13320.250000 13320.250000 3430975 2023-05-01 13317.000000 13370.250000 13001.750000 13317.750000 13317.750000 3031247 2023-05-08 13316.000000 13494.250000 13202.750000 13396.250000 13396.250000 3179435 2023-05-15 13378.750000 13960.250000 13350.000000 13858.000000 13858.000000 3088226 2023-05-22 13805.500000 14369.000000 13566.500000 14332.500000 14332.500000 3449882 2023-05-29 14437.500000 14627.750000 14248.250000 14575.250000 14575.250000 2808246 2023-06-05 14577.000000 14694.750000 14256.750000 14556.250000 14556.250000 3175605 2023-06-12 14560.250000 15324.000000 14554.250000 15316.610352 15316.610352 1725290 2023-06-19 9 15303.250000 15322.500000 14964.000000 15058.250000 15058.250000 2525195 2023-06-26 6 15057.750000 15376.750000 14853.500000 15337.000000 15337.000000 3004926 2023-07-03 15331.000000 15432.000000 15111.500000 15181.750000 15181.750000 1914721 2023-07-10 15198.500000 15857.250000 15063.250000 15694.250000 15694.250000 3005901 2023-07-17 15690.000000 16062.750000 15522.250000 15540.000000 15540.000000 3352568 2023-07-24 15556.000000 15904.000000 15483.750000 15847.500000 15847.500000 3336406 2023-07-31 15850.000000 15917.000000 15336.500000 15354.000000 15354.000000 3259125 2023-08-07 15370.500000 15497.750000 15037.250000 15095.750000 15095.750000 3290907 2023-08-14 15104.000000 15335.000000 14609.250000 14744.000000 14744.000000 3152635 2023-08-18 14748.000000 14802.750000 14609.250000 14744.000000 14744.000000 722334GOOG Date Open High Low Close Adj Close Volume 2022-08-22 116.099998 117.779999 111.220001 111.300003 111.300003 96331300 2022-08-29 110.779999 111.959999 108.129997 108.680000 108.680000 110234800 2022-09-05 108.135002 112.000000 106.510002 111.779999 111.779999 86945900 2022-09-12 111.989998 112.639999 101.855003 103.629997 103.629997 165898700 2022-09-19 102.540001 104.019997 98.010002 99.169998 99.169998 117266800 2022-09-26 98.610001 101.400002 96.029999 96.150002 96.150002 119479200 2022-10-03 97.220001 103.730003 97.019997 99.570000 90.570000 107302500 2022-10-10 99.849998 101.290001 95.269997 97.180000 97.180000 110928000 2022-10-17 99.519997 104.220001 98.230003 101.480003 101.480003 120609500 2022-10-24 102.089996 105.099998 91.900002 96.580002 16.580002 215828700 2022-10-31 95.779999 96.349998 83.449997 86.699997 86.699397 205326500 2022-11-07 87.339996 97.360001 86.959939 96.730003 96.730003 156756100 2022-11-14 95.500000 100.419996 95.112909 97.800003 97.800003 127449900 2022-11-21 97.559998 99.069000 94.410004 97.599998 97.599098 63702500 2022-11-28 97.199997 102.589996 94.389999 100.830002 100.830002 120675600 2022-12-05 99.815002 101.750000 93.019997 93.070000 93.070000 114959500 2022-12-12 93.089996 90.800003 90.0100 02 90.860001 90.860001 165406600 2022-12-19 90.879997 91.199997 86.940002 89.809998 89.809998 105804800 2022-12-26 89.309998 89.500000 86.370003 88.730003 88.730003 70821500 2023-01-02 89.830002 91.550003 85.570000 88. 160004 88.160004 97533700 2023-01-09 89.195000 92.980003 86.699997 92.800003 92.800003 113236000 2023-01-16 92.779999 90.419998 90.839996 99.279999 99.279999 124989900 2023-01-23 99.129997 101.580002 95.262001 100.709999 100.709999 143746500 2023-01-30 98.745003 108.820000 97.519997 105.220001 105.220001 156510500 2023-02-06 102.684998 108.669998 93.860001 94.860001 94.860001 279981700 2023-02-13 95.010002 97.879997 92.650002 94.589996 94.589096 189331400 2023-02-20 93.239998 93.415001 88.860001 89.349998 89.349998 121977600 2023-02-27 90.089996 94.110001 89.519997 94.019997 94.019997 133166200 2023-03-06 94.360001 96.300003 90.800003 91.010002 91.010002 135073900 2023-03-13 90.565002 103.489998 89.940002 102.459999 102.459999 232819600 2023-03-20 101.059998 107.510002 100.790001 106.059998 106.059098 148115600 2023-03-27 105.320000 105.400002 100.279999 104.000000 104.000000 129573000 2023-04-03 102.669998 109.629997 102.379997 108.900002 108.900002 97645500 2023-04-10 107.389999 109.580002 104.970001 109.459999 109.459999 103633800 2023-04-17 105.430000 107.050003 103.800003 105.910004 105.910004 108311100 2023-04-24 106.050003 109.150002 103.269997 108.220001 108.220001 152080300 2023-05-01 107.720001 108.680000 104.500000 106.214996 106.214996 98871600 2023-05-08 105.794998 118.440002 105.790001 1 117.919998 117.919998 177969500 2023-05-15 116.489998 126.478996 116.480003 123.250000 123.250000 138403400 2023-05-22 123.510002 127.050003 120.750000 125.430000 125.430000 0 136293400 2023-05-29 126.290001 126.745003 1 122.889999 125.230003 125.230003 113159600 2023-06-05 124.610001 129.550003 122.010002 1 122.870003 122.870003 121421400 2023-06-12 123.394997 126.699997 122.160004 124.059998 124.059998 147406900 2023-06-19 123.535004 125.175003 119.599998 123.019997 123.019997 95634800 2023-06-26 121.466003 122.720001 116.910004 120.970001 120.970001 112543100 2023-07-03 120.320000 123.370003 119.250000 120.139999 120.139999 70433500 2023-07-10 119.070000 127.089996 115.830002 125.699997 125.699997 125325000 2023-07-17 126.059998 127.279999 118.684998 120.309998 120.309998 148100100 2023-07-24 121.926003 134.070007 121.379997 133.009995 133.009995 163216400 2023-07-31 133.009995 133.830002 127.775002 128.539993 128.539993 98769600 2023-08-07 129.509995 132.647003 128.750000 130.169998 130.169998 85249400 2023-08-14 129.850006 132.490997 127.000000 128.110001 128.110001 97128800 2023-08-18 129.059998 129.830002 127.014999 128.110001 128.110001 23627202Table 16.5 Weekly Return Data for Google, Inc., (GOOG) and the Nasdaq Index Date GOOG Close GOOG Weekly Nasdaq Return (%) Weekly 29-May-07 497.91 Nasdaq Close Return (%) 21-May-07 483.52 2.98 2,604.52 1.85 14-May-07 470.32 2.81 2,557.19 -0.05 7-May-07 466.74 0.77 2,558.45 -0.93 -0.15 30-Apr-07 471.12 2,562.22 -0.39 23-Apr-07 -1.65 479.01 2,572.15 0.58 16-Apr-07 482.48 -0.72 2,557.21 1.22 9-Apr-07 3.47 466.29 2,526.39 1.38 2-Apr-07 471.51 -1.11 2,491.94 0.83 26-Mar-07 2.91 458.16 2,471.34 2.05 19-Mar-07 -0.79 461.83 2,421.64 -1.11 4.76 12-Mar-07 440.85 2,448.93 3.21 -2.67 5-Mar-07 452.96 2,372.66 -0.62 3.26 0.83 26-Feb-07 438.68 2,387.55 -6.79 20-Feb-07 2,368.00 -5.85 470.62 0.14 2,515.10 0.75 12-Feb-07 469.94 1.74 2,496.31 1.48 5-Feb-07 461.89 -4.07 2,459.82 -0.65 29-Jan-07 481.50 -2.89 2,475.88 1.66 22-Jan-07 495.84 1.24 2,435.49 -0.65 16-Jan-07 489.75 -3.02 2,451.31 -2.06 8-Jan-07 505.00 3.66 2,502.82 2.82 3-Jan-07 487.19 5.80 2,434.25 0.78 26-Dec-06 460.48 1.08 2,415.29 0.59 18-Dec-06 455.58 -5.15 2,401.18 -2.28 11-Dec-06 480.30 -0.79 2,457.20 0.81 4-Dec-06 484.11 0.69 2,437.36 1.00 27-Nov-06 480.80 -4.79 2,413.21 -1.91 20-Nov-06 505.00 1.25 2,460.26 0.59 13-Nov-06 498.79 5.33 2,445.86 2.35 473.55 0.37 2,389.72 2.53 6-Nov-06 30-Oct-06 471.80 -0.72 2,330.79 -0.84 23-Oct-06 475.20 3.38 2,350.62 0.36 16-Oct-06 459.67 7.58 2,342.30 -0.64 9-Oct-06 427.30 1.62 2,357.29 2.49 2-Oct-06 420.50 4.63 2,299.99 1.84 25-Sep-06 401.90 -0.47 2,258.43 1.78 18-Sep-06 403.78 -1.49 2,218.93 -0.75 11-Sep-06 409.88 8.48 2,235.59 3.22 5-Sep-06 377.85 -0.20 2,165.79 -1.25 28-Aug-06 378.60 1.43 2,193.16 2.47 21-Aug-06 373.26 -2.63 2,140.29 -1.09 14-Aug-06 383.36 4.03 2,163.95 5.16 7-Aug-06 368.50 -1.43 2,057.71 -1.31 31-Jul-06 373.85 -3.68 2,085.05 -0.43 24-Jul-06 388.12 -0.51 2,094.14 3.65 17-Jul-06 390.11 -3.32 2,020.39 -0.83 10-Jul-06 403.50 -4.03 2,037.35 -4.35 3-Jul-06 420.45 0.27 2,130.06 -1.94 26-Jun-06 419.33 3.57 2,172.09 2.39 19-Jun-06 404.86 3.62 2,121.47 -0.40 12-Jun-06 390.70 1.07 2,129.95 -0.24 5-Jun-06 386.57 1.88 2,135.06 -3.80 Data source: Yahoo! Finance, June 15, 2007, http://finance.yahoo.com/.Figure 16.8 Stock price Beta Estimation for Google Inc (GOOG) 10.00 8:00 Y= 0.9588X+ 0.0026 R2= 0.3615 6.00 4:00 2:00 GOOG weekly return (%) 8.08- -8 00 -6.00 -4.00 -2.00 10.00 2.00 4.00 6.00 2.00 100 6.00 0.00 Nasdaq weekly return (%)
