Regression

Download monthly prices for the past five years for stock Wynn Resorts Limited (WYNN) and for the S&P. Compute your monthly returns and those of the S&P. Using the Data Analysis option in Excel, regress your monthly returns on those of the S&P. How closely does your sample slope agree with the Yahoo Beta? Explain in your own words what Beta is trying to measure.

Plot your monthly stock returns against the S&P returns. Add the Excel's regression line, then add the approximate 95% prediction intervals, stating how those were computed. Add a vertical cut anywhere you choose and explain how the intersection of that line with the two prediction interval lines is informative.