Question

Suppose you are given the following annual return data for Gamestop and the market index from 2002 to 2015. Calculate the Gamestop's beta. (Round to 3 decimals) Year RetGME RetDIA 2003 0.453 0.246 2004 0.372 0.049 2005 0.353 0.016 2006 0.549 0.173 2007 0.813 0.084 2008 -1.053 -0.388 2009 0.013 0.205 2010 0.042 0.131 2011 0.053 0.078 2012 0.076 0.095 2013 0.705 0.260 2014 -0.344 0.093 2015 -0.151 0.001

Answer 1

Using excel to calculate Beta

		A	B
		Gamestop	Market Index
1	2003	45.30%	24.60%
2	2004	37.20%	4.90%
3	2005	35.30%	1.60%
4	2006	54.90%	17.30%
5	2007	81.30%	8.40%
6	2008	-105.30%	-38.80%
7	2009	1.30%	20.50%
8	2010	4.20%	13.10%
9	2011	5.30%	7.80%
10	2012	7.60%	9.50%
11	2013	70.50%	26.00%
12	2014	-34.40%	9.30%
13	2015	-15.10%	0.10%
	Beta	2.289
	Excel formula	Slope(A1:A13,B1:B13)

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