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?

Question

You are interested in stock GE and you find the following information:

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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