Please see attached. Is there a way to interpret using excel? The volatility of a stock is often measured by its beta value. More information about beta values is provided below. The tablebelow gives beta values for five stocks. Complete (a) and (b).CompanyRetaАBCE0.42 0.79 1.29 2.66 5.03Click the icon to view information about the beta value of a stock.a. For each of the five companies, interpret the beta value. Choose the correct answer below.A. The stocks of companies A and B move about 42% and 79% as much as the overall market, respectively. The stocks ofcompanies C, D, and E move about 29%, 166%, and 403% more than the overall market, respectively.B. The stocks of companies A and B move about 58% and 21% as much as the overall market, respectively. The stocks ofcompanies C, D, and E move about 129%, 266%, and 503% as much as the overall market, respectively.O C. The stocks of companies A and B move about 42% and 79% less than the overall market, respectively. The stocks ofcompanies C, D, and E move about 29%, 166%, and 403% more than the overall market, respectively.D. The stocks of companies A and B move about 42% and 79% more than the overall market, respectively. The stocks ofcompanies C, D, and E move about 29%, 166%, and 403% more than the overall market, respectively. You can estimate the beta value of a stock by developing a simple linearregression model, using the percentage weekly change in the stock as thedependent variable and the percentage weekly change in a market as theindependent variable. The S&P 500 Index is a common index to use. For example,if you wanted to estimate the beta value for a company, you could use the followingmodel, which is sometimes referred to as a market model:(% weekly change in company) = Bo+ B1 (% weekly change in S&P 500 Index) + e%3DThe least-squares regression estimate of the slope b, is the estimate of the betavalue for the company. A stock with a beta value of 1.0 tends to move the same asthe overall market. A stock with a beta value of 1.5 tends to move 50% more thanthe overall market, and a stock with a beta value of 0.6 tends to move only 60% asmuch as the overall market. Stocks with negative beta values tend to move in theopposite direction of the overall market.

Name: Please see attached. Is there a way to interpret using excel? The vola
Uploaded: 2024-03-20T06:38:44.000Z
Channel: Bartleby
Description: Please see attached. Is there a way to interpret using excel? The volatility of a stock is often measured by its beta value. More information about beta values is provided below. The tablebelow gives beta values for five stocks. Complete (a) and (b).