The table lists the monthly total returns on Wal-Mart Stores Inc. common stock and the...
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Accounting
The table lists the monthly total returns on Wal-Mart Stores Inc. common stock and the market rates of return for a 24-month period.
Observation
Month
Wal-Mart rate of return (%)
Market rate of return (%)
1
Aug 2014
3.29
4.18
2
Sep 2014
1.28
-2.11
3
Oct 2014
-0.26
2.74
4
Nov 2014
14.78
2.43
5
Dec 2014
-1.35
-0.01
6
Jan 2015
-1.05
-2.77
7
Feb 2015
-1.24
5.78
8
Mar 2015
-1.41
-1.01
9
Apr 2015
-5.11
0.42
10
May 2015
-4.24
1.39
11
Jun 2015
-4.50
-1.70
12
Jul 2015
1.48
1.65
13
Aug 2015
-9.46
-6.00
14
Sep 2015
0.17
-2.95
15
Oct 2015
-11.72
7.86
16
Nov 2015
2.80
0.56
17
Dec 2015
5.05
-2.04
18
Jan 2016
8.25
-5.67
19
Feb 2016
-0.03
-0.02
20
Mar 2016
4.01
7.03
21
Apr 2016
-2.37
0.63
22
May 2016
6.62
1.79
23
Jun 2016
3.16
0.23
24
Jul 2016
-0.07
3.97
Estimate beta to two decimal places for Wal-Mart based on this data. If beta is negative, then include a minus sign. Hint: see Examples 18 and 19 in the lecture.
0.42
-0.37
0.20
-0.04
0.89
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