Question 2 The following data relates to Company 2's share prices and the relevant market indices. Period Company 2' share prices Market indices Dec-22 1.23 234 Nov-22 1.15 225 Oct-22 1.12 222 0.98 1.24 1.36 1.29 1.25 1.17 1.2 1.15 1.19 Sep-22 Aug-22 Jul-22 Jun-22 May-22 Apr-22 Mar-22 Feb-22 Jan-22 216 226 230 228 217 206 207 217 213 Required Estimate the beta for Company 2 using the data above.
Question 2 The following data relates to Company 2's share prices and the relevant market indices. Period Company 2' share prices Market indices Dec-22 1.23 234 Nov-22 1.15 225 Oct-22 1.12 222 0.98 1.24 1.36 1.29 1.25 1.17 1.2 1.15 1.19 Sep-22 Aug-22 Jul-22 Jun-22 May-22 Apr-22 Mar-22 Feb-22 Jan-22 216 226 230 228 217 206 207 217 213 Required Estimate the beta for Company 2 using the data above.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:Question 2
The following data relates to Company 2's share prices and the
relevant market indices.
Period Company 2' share prices Market indices
Dec-22
1.23
234
Nov-22
1.15
225
Oct-22
1.12
222
Sep-22
0.98
216
Aug-22
1.24
226
Jul-22
1.36
230
Jun-22
1.29
228
May-22
1.25
217
Apr-22
1.17
206
Mar-22
1.2
207
Feb-22
1.15
217
Jan-22
1.19
213
Required
Estimate the beta for Company 2 using the data above.
You may use the data provided and run an OLS regression on
Excel. If you do this, you must explain the steps that you take to
apply the data to the regression and provide the regression
output in your answer.
Alternatively, you may use the covariance-variance method to
estimate the beta value. If you do this, you must provide the full
workings for each step.
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