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You are interested in stock GE and you find the following information: month GE S&P500 index GE return S&P500 return Jan 2021 $10.66 3714 Feb.
You are interested in stock GE and you find the following information:
month | GE | S&P500 index | GE return | S&P500 return |
Jan 2021 | $10.66 | 3714 | ||
Feb. 2021 | $12.52 | 3811 | ? | ? |
Mar. 2021 | $13.11 | 3921 | ? | ? |
1) calculate the monthly (February and March) return of GE and S&P500 index?
2) Describe how we estimate the beta of GE assuming you have up to 10 years of monthly prices information of GE and S&P500 index?
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