Compute the beta for a stock that is included in the Dow Jones Industrial Average using regression analysis in Excel.
ANY STOCK WITHIN THE DOW JONES INDUSTRIAL AVERAGE AND PLACE CALCULATIONS IN A EXCEL SPREADSHEET
Complete the following:
• Find the beta reported at a financial website such as Yahoo Finance or Google Finance.
• Describe how this beta compares with the beta you have calculated.
• Discuss the R-squared value of your beta and the statistical predictive value of beta.
• Describe what the empirical financial research indicates regarding the accuracy of beta as a predictor of risk.
• Include an excel spreadsheet with all calculations.