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    Beta calculation

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    I need to learn how to calculate the current Beta for each security (use .3 Beta for bonds and 0 for money market instruments for these companies)

    GE, Wal-Mart, Citibank, Ford, and Dell

    Excel or Word would be fine, thanks.

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    Solution Preview

    Please see ** ATTACHED ** file(s) for complete solutions and details!!
    The securities that a company would have would be debt and common stock. Debt beta is already given as 0.3.

    The common stock beta is calculated as:

    1. We take the stock price for the company and an index (usually S&P 500) for 37 months (so as to get 36 data points ...

    Solution Summary

    The solution explains how to calculate the stock beta using stock prices