The table lists the monthly total returns on Adobe Systems Inc. common stock and the market rates of return for a 24-month period. Observation Month Adobe rate of return (%) Market rate of return (%)

1 Aug 2014 3.83 4.18

2 Sep 2014 -3.77 -2.11

3 Oct 2014 1.34 2.74

4 Nov 2014 5.08 2.43

5 Dec 2014 -1.33 -0.01

6 Jan 2015 -3.54 -2.77

7 Feb 2015 12.79 5.78

8 Mar 2015 -6.52 -1.01

9 Apr 2015 2.87 0.42

10 May 2015 3.98 1.39

11 Jun 2015 2.43 -1.70

12 Jul 2015 1.21 1.65

13 Aug 2015 -4.17 -6.00

14 Sep 2015 4.65 -2.95

15 Oct 2015 7.83 7.86

16 Nov 2015 3.16 0.56

17 Dec 2015 2.71 -2.04

18 Jan 2016 -5.12 -5.67

19 Feb 2016 -4.47 -0.02

20 Mar 2016 10.16 7.03

21 Apr 2016 0.45 0.63

22 May 2016 5.57 1.79

23 Jun 2016 -3.70 0.23

24 Jul 2016 2.16 3.97

Estimate beta to two decimal places for Adobe based on this data. Hint: see Examples 16 and 17 in the lecture.

1.04

1.73

1.27

1.42

1.58