Question

You are given the following set of data:  HISTORICAL RATES OF return : Year NYSE Stock 1...

You are given the following set of data:  HISTORICAL RATES OF return :

Year

NYSE

Stock

1

-26.50%

-14%

2

37.20%

23%

3

23.80%

17.50%

4

-7.20%

2%

5

6.60%

8.1%

6

20.50%

19.40%

7

30.60%

18.20%

please calculate Stock X's beta coefficient. (please show me your work and formula)

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Answer #1

Beta = covarianceNYSE, Stock / varianceStock

Covariance is calculated using COVAR.S function in Excel

Variance is calculated using VAR.S function in Excel

Beta = 1.70

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