QUESTION 17 3 points Which of the following identifies a method for calculating

Question

QUESTION 17 3 points Which of the following identifies a method for calculating beta? a. Regress the monthly closing stock price against the monthly closing value of the S&P; 500 Index using five years of historical data. The slope coefficient is beta. O b. Regress the daily stock return against the daily return of the NYSE Composite index using one year of historical data. The slope coefficient is beta O c. Same as "a" except that the intercept is beta O d. Same as "b" except that the intercept is beta O e. Same as "b" except that you cannot use daily instead of the slope coefficient. instead of the slope coefficient. data to calculate beta

Explanation / Answer

To calculate beta, regress daily stock return against daily return of the NYSE composite index using one year data. The slope coefficient is considering as beta of stock.

Option (B) is correct answer.

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