Question

Use the data table to estimate the beta of Nike and HP Inc. stock based on their monthly returns from 2011-2017.

Date   NKE   HPQ   S&P 500
Jan-11   -3.442%   8.527%   2.330%
Feb-11   7.941%   -4.509%   3.474%
Mar-11   -13.580%   -5.693%   -0.005%
Apr-11   8.745%   -1.464%   2.896%
May-11   2.587%   -7.406%   -1.121%
Jun-11   8.017%   -1.915%   -1.706%
Jul-11   0.189%   -3.379%   -2.000%
Aug-11   -3.882%   -25.988%   -5.498%
Sep-11   0.115%   -12.738%   -6.910%
Oct-11   12.677%   18.530%   10.915%
Nov-11   -0.176%   5.036%   -0.406%
Dec-11   1.695%   -6.890%   1.024%
Jan-12   7.907%   8.618%   4.637%
Feb-12   3.779%   -9.543%   4.341%
Mar-12   1.816%   -4.803%   3.214%
Apr-12   3.163%   3.903%   -0.668%
May-12   -2.011%   -8.401%   -6.006%
Jun-12   -18.857%   -10.050%   4.045%
Jul-12   6.345%   -9.299%   1.183%
Aug-12   5.838%   -7.456%   2.505%
Sep-12   -2.516%   2.788%   2.543%
Oct-12   -3.719%   -18.816%   -1.820%
Nov-12   6.675%   -6.209%   0.566%
Dec-12   7.591%   11.937%   0.902%
Jan-13   4.748%   15.860%   5.119%
Feb-13   1.536%   21.987%   1.276%
Mar-13   8.355%   19.815%   3.795%
Apr-13   7.778%   -13.591%   1.921%
May-13   -2.390%   18.544%   2.361%
Jun-13   3.276%   2.865%   -1.340%
Jul-13   -1.193%   3.548%   5.168%
Aug-13   0.509%   -13.006%   -2.999%
Sep-13   15.632%   -4.612%   3.176%
Oct-13   4.295%   16.103%   4.631%
Nov-13   4.461%   12.228%   2.964%
Dec-13   -0.025%   3.473%   2.580%
Jan-14   -7.363%   3.645%   -3.525%
Feb-14   8.140%   3.034%   4.552%
Mar-14   -5.671%   9.370%   0.829%
Apr-14   -1.232%   2.163%   0.695%
May-14   6.086%   1.331%   2.321%
Jun-14   0.832%   1.589%   2.064%
Jul-14   -0.542%   5.730%   -1.344%
Aug-14   2.463%   6.712%   3.946%
Sep-14   13.558%   -5.731%   -1.371%
Oct-14   4.226%   1.156%   2.355%
Nov-14   6.798%   8.863%   2.747%
Dec-14   -2.598%   3.641%   -0.253%
Jan-15   -4.056%   -9.968%   -2.963%
Feb-15   5.886%   -3.570%   5.620%
Mar-15   3.305%   -9.551%   -1.566%
Apr-15   -1.485%   5.809%   0.983%
May-15   3.430%   1.304%   1.286%
Jun-15   6.246%   -8.989%   -1.999%
Jul-15   6.665%   1.699%   2.215%
Aug-15   -3.012%   -8.060%   -6.134%
Sep-15   10.541%   -7.350%   -2.489%
Oct-15   6.554%   5.271%   8.529%
Nov-15   0.954%   2.422%   0.366%
Dec-15   -5.020%   -4.593%   -1.729%
Jan-16   -0.784%   -17.990%   -4.979%
Feb-16   -0.677%   10.093%   -0.083%
Mar-16   0.065%   16.408%   6.721%
Apr-16   -4.116%   -0.406%   0.394%
May-16   -6.311%   9.046%   1.701%
Jun-16   0.254%   -5.277%   0.342%
Jul-16   0.543%   11.633%   3.647%
Aug-16   3.856%   2.570%   0.120%
Sep-16   -8.380%   8.935%   0.001%
Oct-16   -4.691%   -6.697%   -1.734%
Nov-16   -0.219%   6.280%   3.684%
Dec-16   1.877%   -2.775%   2.032%
Jan-17   4.072%   1.415%   1.789%
Feb-17   8.053%   15.415%   3.929%
Mar-17   -2.187%   3.700%   0.128%
Apr-17   -0.574%   5.257%   0.993%
May-17   -4.367%   -0.319%   1.411%
Jun-17   11.681%   -6.116%   0.639%
Jul-17   0.085%   9.268%   2.055%
Aug-17   -10.262%   -0.105%   0.292%
Sep-17   -1.818%   5.308%   2.010%
Oct-17   6.056%   7.966%   2.356%
Nov-17   9.875%   -0.464%   3.057%
Dec-17   3.856%   -1.402%   1.208%

Answer 1