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Download the monthly price for any company you like from Finance.Yahoo.com. You should pick a company with a minimum of 4 decades of pricing history (1980-2017).

1. Create a returns scatter- plot (the way we did in the class) and calculate the beta of the company for the entire time period. To calculate market returns use SP500.

2. Now calculate a time-varying beta by splitting your data to 4 periods (1980-1990, 1990-2000, 2000-2010, 2010-2017) and creating scatter-plots for each time period sep- arately.

3. What do you conclude from observing values for beta over time?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92714514

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