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Question 3 Company C, a newly listed company on the Alternative Investment Market (AIM) of the London Stock Exchange. You observe the following information. Month

Question 3

Company C, a newly listed company on the Alternative Investment Market (AIM) of the London Stock Exchange. You observe the following information.

Month

Feb

Jan

Dec

Nov

Oct

Sep

A (share price at end of month in pence)

256

259

239

248

238

230

FTSE100 (index)

7693

7720

7740

7687

7350

7390

Required:

(a) Estimate the beta value for Company C, using the covariance-variance approach.

(please don't do it on a paper, do it on laptop. Thank you)

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