The use of benchmarks to compare risk

This unit's notes discussed the measurement of risk. Beta, which measures the co-movement of stock prices with the market, provides one indicator of systematic risk. The S&P 500 index, a proxy for the equity market, often serves as the benchmark.

In this enrichment activity, measure and interpret the risk of Apple and Tesla for the period of July 1, 2016 to June 1, 2021 by calculating the beta of both companies. Use the S&P 500 index as the benchmark. The data sets are provided for this activity.

Note:

To calculate the real-time beta value for Apple and Tesla, you can download the most current data sets from Yahoo Finance. Use the five-year monthly data in your calculations to check your results against the beta values provided for the companies on the Yahoo Finance Summary page. Please refer to the downloadable Excel example in the Unit 1 notes for comprehensive instructions.

Adj Close - AAPL	% change in AAPL	Adj Close - TSLA	% change in TSLA	Adj Clos - GSPC	%change in GSPC
24.166025	1.81%	46.958	-9.70%	2,173.60
24.604315	7.13%	42.402	-3.76%	2,170.95
26.358023	0.43%	40.806	-3.09%	2,168.27
26.472267	-2.66%	39.546001	-4.21%	2,126.15
25.768143	5.33%	37.880001	12.82%	2,198.81
27.142502	4.77%	42.737999	17.90%	2,238.83
28.438457	12.89%	50.386002	-0.77%	2,278.87
32.103706	5.32%	49.998001	11.32%	2,363.64
33.812786	-0.01%	55.66	12.85%	2,362.72
33.810429	6.34%	62.813999	8.58%	2,384.20
35.954628	-5.33%	68.202003	6.04%	2,411.80
34.037441	3.27%	72.321999	-10.55%	2,423.41
35.150578	10.27%	64.694	10.03%	2,470.30
38.759476	-5.66%	71.18	-4.16%	2,471.65
36.567486	9.68%	68.220001	-2.81%	2,519.36
40.107498	1.66%	66.306	-6.84%	2,575.26
40.77422	-1.17%	61.77	0.81%	2,647.58
40.296925	-1.06%	62.27	13.80%	2,673.61
39.868317	6.38%	70.862	-3.18%	2,823.81
42.413807	-5.42%	68.612	-22.42%	2,713.83
40.114544	-1.50%	53.226002	10.43%	2,640.87
39.512039	13.08%	58.779999	-3.12%	2,648.05
44.678776	-0.56%	56.945999	20.45%	2,705.27
44.428638	2.80%	68.589996	-13.07%	2,718.37
45.67189	19.62%	59.627998	1.18%	2,816.29
54.633949	-0.48%	60.332001	-12.23%	2,901.52
54.370342	-3.05%	52.953999	27.40%	2,913.98
52.713268	-18.40%	67.463997	3.90%	2,711.74
43.011681	-11.36%	70.096001	-5.04%	2,760.17
38.124844	5.52%	66.559998	-7.75%	2,506.85
40.227585	4.03%	61.403999	4.19%	2,704.10
41.849354	10.17%	63.976002	-12.51%	2,784.49
46.106709	5.64%	55.972	-14.71%	2,834.40
48.70879	-12.76%	47.737999	-22.43%	2,945.83
42.494881	13.49%	37.032001	20.68%	2,752.06
48.226288	7.64%	44.692001	8.12%	2,941.76
51.910507	-2.02%	48.321999	-6.62%	2,980.38
50.862747	7.70%	45.122002	6.76%	2,926.46
54.781124	11.07%	48.174	30.74%	2,976.74
60.84454	7.43%	62.984001	4.77%	3,037.56
65.367035	10.21%	65.987999	26.79%	3,140.98
72.039879	5.40%	83.666	55.52%	3,230.78
75.930748	-11.68%	130.113998	2.68%	3,225.52
67.062218	-6.76%	133.598007	-21.56%	2,954.22
62.531918	15.54%	104.800003	49.21%	2,584.59
72.247726	8.22%	156.376007	6.79%	2,912.43
78.18396	15.05%	167	29.32%	3,044.31
89.950027	16.51%	215.962006	32.50%	3,100.29
104.803635	21.44%	286.152008	74.15%	3,271.12
127.2714	-10.09%	498.320007	-13.91%	3,500.31
114.428673	-6.00%	429.01001	-9.55%	3,363.00
107.561584	9.36%	388.040009	46.27%	3,269.96
117.630028	11.65%	567.599976	24.33%	3,621.63
131.333557	-0.55%	705.669983	12.45%	3,756.07
130.611008	-8.11%	793.530029	-14.87%	3,714.24
120.020378	0.88%	675.5	-1.12%	3,811.15
121.081955	7.62%	667.929993	6.21%	3,972.89
130.310547	-5.21%	709.440002	-11.87%	4,181.17
123.520439	10.10%	625.219971	8.71%	4,204.11
135.993057	6.50%	679.700012	1.10%	4,297.50
144.830231	-100.00%	687.200012	-100.00%	4,395.26

N. B : Please dont come up with AI based answer , I need a answer with an example . else i will not give you thumbs up