1. FIN3013 Lab #8

2. UTSA College of Business FIN3013Lab Questions? From Assignment #7

3. UTSA College of Business FIN3013Lab Assignment #9 Calculating Beta for Your Company Data Use the monthly return data that you calculated for your stock and for the S&P500 in Lab Assignment #3. You should have monthly return data for your company and for the S&P500 from January 1, 1999 through December 31, 2005.

4. UTSA College of Business FIN3013Lab Assignment #9 Calculating Beta for Your Company Need to calculate a regression There are several methods in excel to calculate a regression We will use the charting capability Begin by choosing the “insert” option Then “chart” Then “XY (scatter) Choose the “series” option to tell excel what data to use S&P500 return column is used for “X value” Your stock return column is used for “Y value”

5. UTSA College of Business FIN3013Lab Assignment #9 Calculating Beta for Your Company You now have a scatter graph To get a regression line: Click your left mouse key to make several of the data points turn yellow. With your mouse pointing to one of these yellow data points, right click your mouse. Choose “add trendline” We will use the default (linear) trend line Choose “options” so that you can click “display equation on chart”

6. UTSA College of Business FIN3013Lab Assignment #9 Calculating Beta for Your Company You may find that your regression equation is difficult to read if it is placed over the data points. You can move this equation to the side of the graph (it is in a text box) so that it will be easier to read. Make sure that you have properly labeled your graph and that your graph has a title.

7. UTSA College of Business FIN3013Lab Assignment #9 Writing your memo Explain what “beta” is Use the concept of beta to explain how risky your stock is relative to the S&P500 Compare the beta that you calculate with the beta that is provided on the http://finance.yahoo.com website for your stock If beta is not available for your stock at this website, use a search engine to find an alternative source Specifically refer to your graph in your writing Use your professional writing skills when writing your memo.

8. UTSA College of Business FIN3013Lab Remember Assignment #8 is due at Lab #9 Review

9. UTSA College of Business FIN3013Lab Quiz #4