Question

Use the data table to estimate the beta of Nike and HP Inc.HP Inc. stock based on their monthly returns from​ 2011-2015. ​(Hint​: You can use the​ slope() function in​ Excel.)

Monthly Returns
Date	Nike		HP Inc.		​S&P 500
​Jan-11	minus−​3.442%		​8.527%		​2.330%
​Feb-11	​7.941%		minus−​4.509%		​3.474%
​Mar-11	minus−​14.624%		minus−​5.913%		minus−​0.005%
​Apr-11	​8.745%		minus−​1.465%		​2.896%
​May-11	​2.587%		minus−​7.406%		minus−​1.121%
​Jun-11	​6.915%		minus−​2.301%		minus−​1.706%
​Jul-11	​0.189%		minus−​3.379%		minus−​2.000%
​Aug-11	minus−​3.882%		minus−​25.988%		minus−​5.498%
​Sep-11	minus−​0.958%		minus−​13.292%		minus−​6.910%
​Oct-11	​12.677%		​18.530%		​10.915%
​Nov-11	minus−​0.176%		​5.036%		minus−​0.406%
​Dec-11	​0.572%		minus−​7.406%		​1.024%
​Jan-12	​7.907%		​8.618%		​4.637%
​Feb-12	​3.779%		minus−​9.543%		​4.341%
​Mar-12	​0.815%		minus−​5.373%		​3.214%
​Apr-12	​3.163%		​3.903%		minus−​0.668%
​May-12	minus−​2.977%		minus−​8.401%		minus−​6.006%
​Jun-12	minus−​18.857%		minus−​10.750%		​4.045%
​Jul-12	​6.345%		minus−​9.299%		​1.183%
​Aug-12	​4.681%		minus−​7.456%		​2.505%
​Sep-12	minus−​2.516%		​1.848%		​2.543%
​Oct-12	minus−​3.719%		minus−​18.816%		minus−​1.820%
​Nov-12	​6.675%		minus−​6.209%		​0.566%
​Dec-12	​6.299%		​10.716%		​0.902%
​Jan-13	​4.748%		​15.860%		​5.119%
​Feb-13	​1.147%		​21.987%		​1.276%
​Mar-13	​8.355%		​19.027%		​3.795%
​Apr-13	​7.778%		minus−​13.591%		​1.921%
​May-13	minus−​2.720%		​18.544%		​2.361%
​Jun-13	​3.276%		​2.150%		minus−​1.340%
​Jul-13	minus−​1.193%		​3.548%		​5.168%
​Aug-13	​0.175%		minus−​13.006%		minus−​2.999%
​Sep-13	​15.632%		minus−​5.394%		​3.176%
​Oct-13	​4.295%		​16.103%		​4.631%
​Nov-13	​4.461%		​12.228%		​2.964%
​Dec-13	minus−​0.329%		​2.834%		​2.580%
​Jan-14	minus−​7.363%		​3.645%		minus−​3.525%
​Feb-14	​7.811%		​3.034%		​4.552%
​Mar-14	minus−​5.671%		​8.785%		​0.829%
​Apr-14	minus−​1.232%		​2.163%		​0.695%
​May-14	​5.757%		​1.331%		​2.321%
​Jun-14	​0.832%		​1.015%		​2.064%
​Jul-14	minus−​0.542%		​5.730%		minus−​1.344%
​Aug-14	​2.152%		​6.712%		​3.946%
​Sep-14	​13.558%		minus−​6.237%		minus−​1.371%
​Oct-14	​4.226%		​1.156%		​2.355%
​Nov-14	​6.798%		​8.863%		​2.747%
​Dec-14	minus−​2.880%		​3.149%		minus−​0.253%
​Jan-15	minus−​4.056%		minus−​9.968%		minus−​2.963%
​Feb-15	​5.583%		minus−​3.570%		​5.620%
​Mar-15	​3.305%		minus−​10.103%		minus−​1.566%
​Apr-15	minus−​1.485%		​5.809%		​0.983%
​May-15	​3.147%		​1.304%		​1.286%
​Jun-15	​6.246%		minus−​9.623%		minus−​2.018%
​Jul-15	​6.665%		​1.699%		​2.259%
​Aug-15	minus−​3.012%		minus−​8.060%		minus−​6.095%
​Sep-15	​10.291%		minus−​8.104%		minus−​2.533%
​Oct-15	​6.554%		​5.271%		​8.506%
​Nov-15	​0.954%		​2.422%		​0.366%
​Dec-15	minus−​5.262%		minus−​4.593%		minus−​1.729%

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Answer 1

Answer:

Given that,

Use the data table to estimate the beta of Nike and HP Inc.HP Inc.

stock based on its monthly returns from​ 2011-2015. ​

(Hint​: You can use the​ slope() function in​ Excel.)