Nbspi choose nbspa stock and samp p 500 index etf and, Ask an Expert

Finance

I/. choose a stock and S& P 500 Index (ETF) and import 1 year of daily stock prices into MS Excel,a. Compute the daily return of the stock and S & P 500,b. Compute the mean and standard deviation of the stock's return and S & P 500,

II/ . Use the Data Analysis ADD-In of Excel to compute the stock's beta coefficient. Regress thestock's return on the return of the S & P 500.

III/ . Using the regression output, determine the stock's systematic and unsystematic risks.Var(R) = β^2Var [S&P 500] + Var [e] = systematic risk and unsystematic risk

IV/ . Provide an explanation.

V/ . Repeat above steps for another stock (not S & P 500, you already have that)

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