Would like to use Amazon and Ebay, and would like for question #3 to be answers. Thanks in advance.

Question:

Choose TWO publicly trade stocks in S&P 500 in the same industry (Amazon and Ebay)

(e.g. Home Depot vs. Lowes) then estimate their market risk (i.e. Beta coefficient, the slope of the characteristic lineby simple linear regression), and calculate their interval estimations for return.

Please submit the Excel file by following the steps:

1.Gather the data from Yahoo:

a.Go to Yahoo Finance Quote Lookup (https://finance.yahoo.com/lookup/).Locate your chosen companys symbol.

b.Enter the symbol of the stock (e.g. IBM)

c.On the vertical bar, click on Historical Data.

d.Fill up the Time Period (1yearup to today), show Historical Prices,and choose Weekly under Frequency, then click Apply.

You will see weekly stock prices for the company.

Click Download Data then save itas Excel file to your computer.

Please trim the data (e.g. eliminate the other columns and only use Close Prices as the stock prices).

Then change the ticker symbol ^GSPC (for S&P 500 index) and download the one year weekly data for S&P 500. Again, use Close Pricesas ^GSC prices for your calculations.

2.In the same Excel file, listthe stock prices (with label on the top cell)

in column A and S&P 500 pricesin column B. Using weekly data in oneyear, you would have 53rows in column A and B.

3.Estimate the return of the stock under consideration (IBM) and the return of the S&P500 by creating the following formula in column C and column D:Return = (Pt-Pt-1)/ Pt-1

Remember, when you create formula in Excel, you have to define the cell clearly. For example, if the price in column A is descending in date, then the formula of return

will be = ($A2-$A3)/$A3, which is created in cell $C2. Scroll it down by holding at the right-bottom corner to create the return for the entire column C.