The use of benchmarks to compare risk This units notes discussed the measurement...
90.2K
Verified Solution
Link Copied!
Question
Accounting
The use of benchmarks to compare risk
This units notes discussed the measurement of risk. Beta, which measures the co-movement of stock prices with the market, provides one indicator of systematic risk. The S&P 500 index, a proxy for the equity market, often serves as the benchmark.
In this enrichment activity, measure and interpret the risk of Apple and Tesla for the period of July 1, 2016 to June 1, 2021 by calculating the beta of both companies. Use the S&P 500 index as the benchmark. The data sets are provided for this activity.
Note:
To calculate the real-time beta value for Apple and Tesla, you can download the most current data sets from Yahoo Finance. Use the five-year monthly data in your calculations to check your results against the beta values provided for the companies on the Yahoo Finance Summary page. Please refer to the downloadable Excel example in the Unit 1 notes for comprehensive instructions.
Adj Close - AAPL
% change in AAPL
Adj Close - TSLA
% change in TSLA
Adj Clos - GSPC
%change in GSPC
24.166025
1.81%
46.958
-9.70%
2,173.60
24.604315
7.13%
42.402
-3.76%
2,170.95
26.358023
0.43%
40.806
-3.09%
2,168.27
26.472267
-2.66%
39.546001
-4.21%
2,126.15
25.768143
5.33%
37.880001
12.82%
2,198.81
27.142502
4.77%
42.737999
17.90%
2,238.83
28.438457
12.89%
50.386002
-0.77%
2,278.87
32.103706
5.32%
49.998001
11.32%
2,363.64
33.812786
-0.01%
55.66
12.85%
2,362.72
33.810429
6.34%
62.813999
8.58%
2,384.20
35.954628
-5.33%
68.202003
6.04%
2,411.80
34.037441
3.27%
72.321999
-10.55%
2,423.41
35.150578
10.27%
64.694
10.03%
2,470.30
38.759476
-5.66%
71.18
-4.16%
2,471.65
36.567486
9.68%
68.220001
-2.81%
2,519.36
40.107498
1.66%
66.306
-6.84%
2,575.26
40.77422
-1.17%
61.77
0.81%
2,647.58
40.296925
-1.06%
62.27
13.80%
2,673.61
39.868317
6.38%
70.862
-3.18%
2,823.81
42.413807
-5.42%
68.612
-22.42%
2,713.83
40.114544
-1.50%
53.226002
10.43%
2,640.87
39.512039
13.08%
58.779999
-3.12%
2,648.05
44.678776
-0.56%
56.945999
20.45%
2,705.27
44.428638
2.80%
68.589996
-13.07%
2,718.37
45.67189
19.62%
59.627998
1.18%
2,816.29
54.633949
-0.48%
60.332001
-12.23%
2,901.52
54.370342
-3.05%
52.953999
27.40%
2,913.98
52.713268
-18.40%
67.463997
3.90%
2,711.74
43.011681
-11.36%
70.096001
-5.04%
2,760.17
38.124844
5.52%
66.559998
-7.75%
2,506.85
40.227585
4.03%
61.403999
4.19%
2,704.10
41.849354
10.17%
63.976002
-12.51%
2,784.49
46.106709
5.64%
55.972
-14.71%
2,834.40
48.70879
-12.76%
47.737999
-22.43%
2,945.83
42.494881
13.49%
37.032001
20.68%
2,752.06
48.226288
7.64%
44.692001
8.12%
2,941.76
51.910507
-2.02%
48.321999
-6.62%
2,980.38
50.862747
7.70%
45.122002
6.76%
2,926.46
54.781124
11.07%
48.174
30.74%
2,976.74
60.84454
7.43%
62.984001
4.77%
3,037.56
65.367035
10.21%
65.987999
26.79%
3,140.98
72.039879
5.40%
83.666
55.52%
3,230.78
75.930748
-11.68%
130.113998
2.68%
3,225.52
67.062218
-6.76%
133.598007
-21.56%
2,954.22
62.531918
15.54%
104.800003
49.21%
2,584.59
72.247726
8.22%
156.376007
6.79%
2,912.43
78.18396
15.05%
167
29.32%
3,044.31
89.950027
16.51%
215.962006
32.50%
3,100.29
104.803635
21.44%
286.152008
74.15%
3,271.12
127.2714
-10.09%
498.320007
-13.91%
3,500.31
114.428673
-6.00%
429.01001
-9.55%
3,363.00
107.561584
9.36%
388.040009
46.27%
3,269.96
117.630028
11.65%
567.599976
24.33%
3,621.63
131.333557
-0.55%
705.669983
12.45%
3,756.07
130.611008
-8.11%
793.530029
-14.87%
3,714.24
120.020378
0.88%
675.5
-1.12%
3,811.15
121.081955
7.62%
667.929993
6.21%
3,972.89
130.310547
-5.21%
709.440002
-11.87%
4,181.17
123.520439
10.10%
625.219971
8.71%
4,204.11
135.993057
6.50%
679.700012
1.10%
4,297.50
144.830231
-100.00%
687.200012
-100.00%
4,395.26
Please help to guide with the answer
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
