Visit yahoo finance and select one stock you are interested in (see https://finance.yahoo.com/mostactive).

Then capture and report the summary screen as below (e.g., the below is for Bank of America). In the Historical data section, you can download the stock price. Using this website, download recent five year stock price and compute monthly returns (use close quotes). Then report the average and standard deviation of the returns. To estimate the beta of your selected stock, you need the market returns. Visit Kenneth French data library (see http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html), and then download monthly market returns and risk free rates (i.e., Fama/French 3 Factors). Using the market returns and risk free rates during the recent five year period (i.e., this period should be the same as the period for your stock data), provide the averages and standard deviations of the markets and risk free rates. Then, regress the excess returns of your stock on the excess returns of the market. Report the beta of your stock and your estimation method. (You can use your convenient statistical software. To provide your method, you need to report the Excel functions or program codes.) Lastly, is your beta greater than one? Provide the potential explanation about your beta (e.g., considering the industry and the firm-specific factors)? Compare the beta that you estimate with the beta that are provided by yahoo finance, and evaluate who (you or yahoo) seems more conservative. (I expect a two or three page report (12 point, 1.5 line space). You do not have to submit your data set, but you need to describe your steps of obtaining and managing your data and summarize the data contents that you think important. The grading will depend on your endeavor of applying what we learned in the class, writing in a compact way, and covering the all required questions above.)