Question

The goal of this exercise is to use stock price data to calculate the beta (systematic risk measure) for Archer Daniels Midland (ADM). Start by downloading the monthly stock prices and dividends for Archer Daniels and the S&P 500 in the Excel spreadsheet on the course website. Use the price and dividend information to compute monthly rates of return for each series over the entire period for which data are available. Using either Excel’s Regression Analysis

Answer 1

To calculate the beta for Archer Daniels Midland (ADM), you need to compute the monthly rates of return for ADM and the S&P 500 over the desired period and then use Excel’s Regression Analysis.

Step-by-step explanation:

To calculate the beta for Archer Daniels Midland (ADM), you will need to use monthly stock price data and dividends for ADM and the S&P 500. The first step is to compute the monthly rates of return for each series over the entire available period. Once you have the rates of return, you can use Excel’s Regression Analysis to calculate the beta.