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Essentials of Investments, 8th Edition

Spreadsheet Templates
MAIN MENU -- Chapter 7

Instructions Problem 16

Data

Copyright © 2010 McGraw-Hill/Irwin

Copyright © 2004 McGraw-Hill/Irwin


Essentials of Investments, 8th Edition Main Menu

Instructions
Navigating the Workbook
Entering your information
Entering data
Printing

Navigating the Workbook Top

Each chapter of the spreadsheets to accompany this text


contains links to help you navigate the workbook. These hyperlinks help you
move around the workbook quickly. The Main Menu contains links to each
problem from the chapter that contains the Excel icon. From the Main Menu,
click on the question you wish to complete. You can always return to the main
menu by clicking on the link located in the upper right of each worksheet.

You can always move quickly around an Excel workbook by selecting the
worksheet tab at the bottom of the screen. Each worksheet in an Excel workbook
will have its own tab. In the spreadsheets to accompany this text
you will see a separate tab for each problem along with the Main Menu,
Instructions, and Help Topics worksheets.

Another way to move quickly around an Excel workbook is by using the


following keyboard shortcuts:
CTRL+PAGE DOWN: Moves you to the next sheet in the workbook.
CTRL+PAGE UP: Moves you to the previous sheet in the workbook.

Entering your information Top

For each question you will see the following lists and boxes:

Student Name:
Course Name:
Student ID:
Course Number:

Enter your information in these cells before submitting your work.

Entering data Top

To enter numbers or text for these questions click the cell you want, type the data and
press ENTER or TAB. Press ENTER to move down the column or TAB to move across the row.

For cells or columns where you want to enter text select “Format”, “Cells” from
Excel’s main menu at the top of your screen. Select the “Number” tab and “Text”
from the category list.

Printing Top

To print your work select "File", "Print Preview" from Excel’s main menu at the top
of your screen. The print area for each question has been set but be sure to review
the look of your print job. If you need to make any changes select “Setup” when
you are previewing the document.

Copyright © 2008 McGraw-Hill/Irwin


Copyright © 2008 McGraw-Hill/Irwin
Monthly Rates of Return: January 2004 - December 2008
Excess Return
Month GM Ford Toyota T-Bills S&P 500 Index GM Ford
Dec-08 23.02 -18.34 -2.95 0.09 -8.31 22.93 -18.43
Nov-08 -25.44 -14.87 3.71 0.02 0.97 -25.46 -14.89
Oct-08 -26.04 22.83 -17.07 0.08 -7.04 -26.12 22.75
Sep-08 -13.77 -57.88 -11.32 0.15 -16.67 -13.92 -58.03
Aug-08 -29.61 16.59 -4.23 0.12 -9.54 -29.73 16.47
Jul-08 -4.92 -7.08 4.11 0.15 1.40 -5.07 -7.23
Jun-08 -11.01 -0.21 -8.46 0.17 -1.07 -11.18 -0.38
May-08 -15.56 -29.26 -7.89 0.17 -8.52 -15.73 -29.43
Apr-08 -6.48 -17.68 0.54 0.17 1.34 -6.65 -17.85
Mar-08 8.78 44.41 0.60 0.17 4.60 8.61 44.24
Feb-08 -9.60 -12.40 -7.06 0.13 -1.03 -9.73 -12.53
Jan-08 -3.13 -1.66 0.21 0.21 -2.79 -3.34 -1.87
Dec-07 11.18 -1.34 2.03 0.27 -6.31 10.91 -1.61
Nov-07 -5.59 -10.39 -5.58 0.34 -1.47 -5.93 -10.73
Oct-07 -6.86 -15.33 -1.74 0.32 -4.19 -7.18 -15.65
Sep-07 -0.25 4.48 -2.07 0.32 1.03 -0.57 4.16
Aug-07 8.79 8.71 1.02 0.42 3.46 8.37 8.29
Jul-07 -4.78 -8.23 -4.10 0.4 0.88 -5.18 -8.63
Jun-07 -6.32 -9.66 -4.17 0.4 -3.53 -6.72 -10.06
May-07 -0.24 12.95 4.24 0.41 -1.87 -0.65 12.54
Apr-07 1.87 3.73 -0.54 0.44 2.95 1.43 3.29
Mar-07 -0.08 1.90 -5.26 0.43 3.99 -0.51 1.47
Feb-07 -0.73 -0.25 -4.07 0.38 0.78 -1.11 -0.63
Jan-07 -0.16 -2.71 1.38 0.44 -2.40 -0.6 -3.15
Dec-06 6.70 8.26 -1.88 0.4 1.11 6.3 7.86
Nov-06 0.52 -7.63 11.88 0.42 0.35 0.1 -8.05
Oct-06 0.61 -1.81 1.74 0.41 1.58 0.2 -2.22
Sep-06 3.60 2.35 8.36 0.41 2.75 3.19 1.94
Aug-06 6.11 -3.35 0.52 0.42 2.28 5.69 -3.77
Jul-06 -1.41 25.49 2.97 0.4 1.78 -1.81 25.09
Jun-06 4.63 -3.05 0.60 0.4 0.05 4.23 -3.45
May-06 5.18 -3.23 -2.60 0.43 -0.17 4.75 -3.66
Apr-06 6.39 3.04 -8.32 0.36 -3.37 6.03 2.68
Mar-06 1.23 -11.42 7.56 0.37 0.89 0.86 -11.79
Feb-06 6.04 -0.13 1.90 0.34 1.31 5.7 -0.47
Jan-06 -3.43 -7.14 3.05 0.35 0.22 -3.78 -7.49
Dec-05 12.61 12.45 -0.87 0.32 2.09 12.29 12.13
Nov-05 -4.31 -5.08 8.13 0.31 -0.50 -4.62 -5.39
Oct-05 -7.52 -2.24 4.25 0.27 4.12 -7.79 -2.51
Sep-05 -7.77 -14.54 0.48 0.29 -2.65 -8.06 -14.83
Aug-05 -5.37 -1.15 13.59 0.3 0.50 -5.67 -1.45
Jul-05 -8.88 -7.12 8.07 0.24 -1.17 -9.12 -7.36
Jun-05 5.44 5.77 6.12 0.23 3.59 5.21 5.54
May-05 4.91 2.65 -0.31 0.24 -0.09 4.67 2.41
Apr-05 2.25 9.50 -1.37 0.21 3.01 2.04 9.29
Mar-05 -7.84 -18.74 -2.25 0.21 -2.08 -8.05 -18.95
Feb-05 -15.28 -10.38 -3.74 0.16 -1.99 -15.44 -10.54
Jan-05 -0.24 -3.97 -0.53 0.16 1.93 -0.4 -4.13
Dec-04 -3.02 -9.33 -4.50 0.16 -2.40 -3.18 -9.49
Nov-04 1.97 3.26 9.59 0.15 2.86 1.82 3.11
Oct-04 -1.17 8.75 -3.71 0.11 4.35 -1.28 8.64
Sep-04 0.08 -6.48 1.59 0.11 1.18 -0.03 -6.59
Aug-04 1.51 -0.46 -2.97 0.11 0.89 1.4 -0.57
Jul-04 1.69 -4.12 -1.01 0.1 0.15 1.59 -4.22
Jun-04 2.39 -5.30 -1.99 0.08 -3.30 2.31 -5.38
May-04 -0.25 5.36 12.81 0.06 1.79 -0.31 5.30
Apr-04 0.00 -3.34 -1.17 0.08 1.62 -0.08 -3.42
Mar-04 -3.19 13.92 -1.74 0.09 -1.98 -3.28 13.83
Feb-04 0.00 -1.28 8.34 0.06 -1.38 -0.06 -1.34
Jan-04 0.56 -5.44 4.11 0.07 1.28 0.49 -5.51
Main Menu

Excess Return
Toyota Market
-3.04 -8.40
3.69 0.95
-17.15 -7.12
-11.47 -16.82
-4.35 -9.66
3.96 1.25
-8.63 -1.24
-8.06 -8.69
0.37 1.17
0.43 4.43
-7.19 -1.16
0.00 -3.00
1.76 -6.58
-5.92 -1.81
-2.06 -4.51
-2.39 0.71
0.60 3.04
-4.50 0.48
-4.57 -3.93
3.83 -2.28
-0.98 2.51
-5.69 3.56
-4.45 0.40
0.94 -2.84
-2.28 0.71
11.46 -0.07
1.33 1.17
7.95 2.34
0.10 1.86
2.57 1.38
0.20 -0.35
-3.03 -0.60
-8.68 -3.73
7.19 0.52
1.56 0.97
2.70 -0.13
-1.19 1.77
7.82 -0.81
3.98 3.85
0.19 -2.94
13.29 0.20
7.83 -1.41
5.89 3.36
-0.55 -0.33
-1.58 2.80
-2.46 -2.29
-3.90 -2.15
-0.69 1.77
-4.66 -2.56
9.44 2.71
-3.82 4.24
1.48 1.07
-3.08 0.78
-1.11 0.05
-2.07 -3.38
12.75 1.73
-1.25 1.54
-1.83 -2.07
8.28 -1.44
4.04 1.21
Chapter 7
Problem 16

Student Name:
Course Name:
Student ID:
Course Number:

Use the monthly returns found in the worksheet "Data" to run the Regression command from the Data Analysis tool.
Save the output to a new worksheet and post your results here.

For help loading the Data Analysis ToolPak go to Office Online

a. Estimate the index model for each firm over the full five-year period. Compare the betas of each firm.

Company beta
GM
Ford
Toyota

b. Now estimate the betas for each firm using only the first two years of the sample and then using only the last two years.
How stable are the beta estimates obtained from these shorter subperiods?

Time Period G.M. Ford Toyota


Jan 2004 – Dec 2008
Jan 2004 – Dec 2005
Jan 2007 – Dec 2008

Type your answer here : b.

Copyright © 2008 McGraw-Hill/Irwin

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