Problem 20

Intro

The following table shows historical beginning-of-year adjusted close prices for a stock and the S&P 500.

	A	B	C
1	Year	Stock	S&P 500
2	2014	33.3	578.22
3	2015	31.37	557.55
4	2016	30.74	527.96
5	2017	33.68	551.15
6	2018	31.38	476.2
7	2019	33.15	417.44
8	2020	30.22	376.12
9	2021	30.25	474.14
10	2022	31.13	527.52

Part 1

Calculate the annual returns and regress the returns on the stock on the returns on the S&P 500. What is the stock's beta, i.e., the slope coefficient of the regression?