Regression Analysis

Estimate the beta of Amazon.

1. Use Yahoo Finance, download Amazons historical monthly stock prices for the last 10 years (Time period 1/1/2011 12/31/2020) and calculate holding period returns every month. Holding period return = (Ending price / Beginning price) - 1
2. Use Yahoo Finance, download S&P 500 historical monthly prices for the past 10 years (Time period 1/1/2011 12/31/2020) and calculate holding period returns every month. Holding period return = (Ending price / Beginning price) - 1
3. Use 1% as annual risk-free rate during these periods.
4. Run a regression. Y variable is Amazon holding period return minus risk-free rate. X variable is S&P 500 holding period return minus risk-free rate.

Show the regression summary result, the coefficient will be a rough estimate of Amazons beta.