Extra CreditCalcBeta

Extra CreditCalcBeta - (Sources like yahoo, google, msn...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Extra Credit Calculating Beta Part I Note: this extra credit is related to the next extra credit. You will use this information for the “Interpreting Beta” extra credit. Calculating beta. Download 5 years of monthly stock returns (not prices)* for your company. Then download 5 years of index returns exactly matching the five years of returns for your company’s stock. Calculate beta by regressing your stock's returns on the returns to your index. Look up 3 other estimates of beta.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (Sources like yahoo, google, msn money, Bloomberg, reuters and many more have this info.) Compare your calculated beta to the betas that you look up. In two or three sentences, state whether your calculated beta is higher or lower than betas you looked up. Is there a wide or narrow range of betas? Why do you think this might be? * Or, download prices and calculated returns, or use return data from a previous assignment...
View Full Document

This note was uploaded on 09/07/2011 for the course BMGT 340 taught by Professor White during the Spring '08 term at Maryland.

Ask a homework question - tutors are online