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I am working on a project where I look at 4 different stocks using the monday closing price for 10 weeks in a row. I need to find the beta for each stock using the S&P data as the independent variable. I just can not seem to come up with anything on this one. All I can find online is the listed beta's for the stocks but they must be from a specific time frame so none of them will work.

2006-12-10 19:57:46 · 2 answers · asked by StevenW 3 in Business & Finance Investing

2 answers

Here is how Wikipedia says to calculate your beta.

Calculation of Beta
To calculate Beta, one needs a list of returns for the asset and returns for the index; these returns can be daily, weekly or any period. Next, a plot should be made, with the index returns on the x-axis and the asset returns on the y-axis, in order to check that there are no serious violations of the linear regression model assumptions. The slope of the fitted line from the linear least-squares calculation is Beta. The y-intercept is the alpha.

2006-12-10 22:19:23 · answer #1 · answered by Anonymous · 1 0

For finding beta the given information is not sufficient though you can try from the definition. You regress stock price against s&p data given. The constant got will be the beta. The other method is little more involved and you don't seem to have the data.

2006-12-10 22:58:35 · answer #2 · answered by Mathew C 5 · 0 1

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