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Please use Excel to solve the problem, and give me detailed steps. Estimating the beta of Facebook, Inc. 1. From http://finance.yahoo.com download monthly prices for

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Please use Excel to solve the problem, and give me detailed steps.

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Estimating the beta of Facebook, Inc. 1. From http://finance.yahoo.com download monthly prices for the most recent five years for Facebook, Inc. (FB). Select the tab Historical Prices, than Time Period: 5Y, Frequency: Monthly, and download to spreadsheet. 2. Follow the same procedure for the S&P500 (^GSPC) . 3. Calculate monthly returns for Facebook and for the S&P500. Use the last column of the data you downloaded from Yahoo (Adj close*). Returns are calculate as: R, = P. + Div - P, Fortunately, Yahoo adjusts prices for dividends and stock splits (if you want to know how the adjustment is done download daily prices and then compare "close" prices with "adj close" prices). Therefore, we can simplify the calculation and calculate returns as follows: R, =- P - P-1 4. Estimate Beta using a simple regression. Regression analysis can be done in excel: the Y- variable is the column range for the stock returns and X-variable is the column range for the market returns (S&P 500). Beta is the coefficient of the X-variable. 5. Compare the value obtained with the value of Beta for Facebook reported in Yahoo Finance. Discuss the meaning of this number

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