Risk and Return
1. Calculate monthly returns for Darden Restaurants and the S&P 500. Be sure to include the dividends for Darden in the return. Show All excel formulas.
	Darden (DRI)		S&P 500
Month	Price	Dividend	Price
6/1/16	59.11		2098.86		DRI Return	SP Return			DRI- Ave	S&P - Ave		(DRI-Ave)x(S&P-Ave)
7/1/16	57.446472	0.56	2173.600098
8/1/16	58.043533		2170.949951
9/1/16	57.742203		2168.27002
10/1/16	61.009743	0.56	2126.149902
11/1/16	69.65522		2198.810059
12/1/16	69.10405		2238.830078
1/1/17	69.636215	0.56	2278.870117
2/1/17	71.520325		2363.639893
3/1/17	80.129959		2362.719971
4/1/17	81.585648	0.56	2384.199951
5/1/17	85.746788		2411.800049
6/1/17	87.202744		2423.409912
7/1/17	80.877548	0.63	2470.300049
8/1/17	79.708763		2471.649902
9/1/17	76.494789		2519.360107
10/1/17	79.883553	1.26	2575.26001
11/1/17	83.174545		2584.840088
12/1/17	94.715607		2673.610107
1/1/18	94.547913	0.63	2823.810059
2/1/18	91.521347		2713.830078
3/1/18	84.631676		2640.870117
4/1/18	92.186485	0.63	2648.050049
5/1/18	87.410004		2705.27002
6/1/18	93.269997		2767.320068
2. Calculate the average, standard deviation, and variance of returns for Darden and the S&P 500. Use the function wizard (fx).									3. Use the covariance equation to find the covariance between Darden and the S&P 500.
				Average							Sum
				Std. Dev							n-1
				Variance							COV
6. Use Regression Analysis to find the beta for Darden. You should get the same answer as in question 5. Print your results below.									4. Use the Correlation Coefficient equation to find the correlation between Darden and the S&P 500.
											Corr
									5. Use the Beta equation to find the beta of Darden.
											Beta
									7. Answer the following concept questions: a. What is the probability that the true beta for Darden is equal to zero? b. If the market risk premium is 7% and the risk-free rate is 2%, what return would you expect to earn on Darden given YOUR beta calculation?