Returns for a firm’s stock and the S&P 500 index for the last four years are...

Returns for a firm’s stock and the S&P 500 index for the last four years are given in the table below. Estimate the firm’s equity beta coefficient. Please show work.

First row is individual stock returns

second row is SP500 returns

Y1	Y2	Y3	Y4
-.01	.25	.18	.14
.03	.17	.12	.08

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

I HAVE TRIED TO PRESENT IT IN SIMPLE MANNER. DID NOT USE EXCEL FUNCTION IN FIRST IMAGE.

SECOND IMAGE USES STATISTICAL EXCEL FUNCTION FOR BETA

jeff jeffy answered 1 year ago

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