Use the data in the spreadsheet provided to estimate the beta of Shoe CompanySho
ID: 2818832 • Letter: U
Question
Use the data in the spreadsheet provided to estimate the beta of Shoe CompanyShoe Company
stock using linear regression.
Returns (%)
Value Weighted Market
Shoe CompanyShoe Company
Jan-09
2.30152
1.7601
Feb-09
1.5808
5.1987
Mar-09
-1.0649
6.5576
Apr-09
-2.4357
-7.6108
May-09
1.4468
-1.1334
Jun-09
2.1527
6.7486
Jul-09
-3.7611
-4.0672
Aug-09
0.2768
3.5441
Sep-09
2.0166
4.8538
Oct-09
1.7753
3.1961
Nov-09
4.8619
4.1049
Dec-09
3.5717
7.4574
Jan-10
-2.6896
4.4585
Feb-10
2.2197
0.3099
Mar-10
1.6624
3.8113
Apr-10
2.5422
7.8247
May-10
3.7586
7.0296
Jun-10
1.1339
5.6732
Jul-10
4.3025
3.2924
Aug-10
0.5865
5.8396
Sep-10
1.0939
3.8811
Oct-10
2.0939
2.9872
Nov-10
4.0116
1.4941
Dec-10
0.3251
2.1446
Jan-11
4.0579
6.7494
Feb-11
0.1626
7.2391
Mar-11
1.9045
1.5976
Apr-11
1.2988
3.8654
May-11
3.1141
1.8419
Jun-11
0.0325
1.2115
Jul-11
0.1981
2.4799
Aug-11
2.5504
2.2602
Sep-11
1.9105
8.8557
Oct-11
3.7242
4.8627
Nov-11
2.3956
7.6072
Dec-11
1.0844
0.4579
Jan-12
1.9424
0.2014
Feb-12
1.3883
5.7138
Mar-12
1.2998
2.0164
Apr-12
3.9521
1.3568
May-12
3.8814
5.3452
Jun-12
1.4899
3.0215
Jul-12
3.1983
3.1795
Aug-12
1.2067
0.1991
Sep-12
4.0158
4.4518
Oct-12
2.5861
12.9138
Nov-12
4.9018
0.9301
Dec-12
0.4354
1.7546
Jan-13
6.2272
4.5648
Feb-13
2.2018
1.8896
Mar-13
1.0433
3.3668
Apr-13
5.1206
1.7846
May-13
2.3881
2.3563
Jun-13
7.8853
12.4808
Jul-13
1.317
1.5919
Aug-13
1.1092
3.2166
Sep-13
9.8413
10.7368
Oct-13
18.4738
13.8768
Nov-13
8.5204
7.6097
Dec-13
2.1404
3.7543
The beta of Shoe CompanyShoe Company
stock is:
(Round to four decimal places.)
Returns (%)
Value Weighted Market
Shoe CompanyShoe Company
Jan-09
2.30152
1.7601
Feb-09
1.5808
5.1987
Mar-09
-1.0649
6.5576
Apr-09
-2.4357
-7.6108
May-09
1.4468
-1.1334
Jun-09
2.1527
6.7486
Jul-09
-3.7611
-4.0672
Aug-09
0.2768
3.5441
Sep-09
2.0166
4.8538
Oct-09
1.7753
3.1961
Nov-09
4.8619
4.1049
Dec-09
3.5717
7.4574
Jan-10
-2.6896
4.4585
Feb-10
2.2197
0.3099
Mar-10
1.6624
3.8113
Apr-10
2.5422
7.8247
May-10
3.7586
7.0296
Jun-10
1.1339
5.6732
Jul-10
4.3025
3.2924
Aug-10
0.5865
5.8396
Sep-10
1.0939
3.8811
Oct-10
2.0939
2.9872
Nov-10
4.0116
1.4941
Dec-10
0.3251
2.1446
Jan-11
4.0579
6.7494
Feb-11
0.1626
7.2391
Mar-11
1.9045
1.5976
Apr-11
1.2988
3.8654
May-11
3.1141
1.8419
Jun-11
0.0325
1.2115
Jul-11
0.1981
2.4799
Aug-11
2.5504
2.2602
Sep-11
1.9105
8.8557
Oct-11
3.7242
4.8627
Nov-11
2.3956
7.6072
Dec-11
1.0844
0.4579
Jan-12
1.9424
0.2014
Feb-12
1.3883
5.7138
Mar-12
1.2998
2.0164
Apr-12
3.9521
1.3568
May-12
3.8814
5.3452
Jun-12
1.4899
3.0215
Jul-12
3.1983
3.1795
Aug-12
1.2067
0.1991
Sep-12
4.0158
4.4518
Oct-12
2.5861
12.9138
Nov-12
4.9018
0.9301
Dec-12
0.4354
1.7546
Jan-13
6.2272
4.5648
Feb-13
2.2018
1.8896
Mar-13
1.0433
3.3668
Apr-13
5.1206
1.7846
May-13
2.3881
2.3563
Jun-13
7.8853
12.4808
Jul-13
1.317
1.5919
Aug-13
1.1092
3.2166
Sep-13
9.8413
10.7368
Oct-13
18.4738
13.8768
Nov-13
8.5204
7.6097
Dec-13
2.1404
3.7543
Explanation / Answer
Use excel or spreadheet function to find Beta=SLOPE(known_y's,known_x's)
where x is the returns on the market and y is the returns on the Shoe company stock
applying the above formula in excel, we get beta=1.0298
the above is answer..
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