Historical Stock Prices At

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```					This workbook demonstrates how to calculate betas from stock price histories downloaded from the
Web (http://moneycentral.msn.com/investor in this case). Once the data is in the worksheet, it
should be sorted from oldest to newest (this isn't strictly necessary, but it facilitates charting).

Next, calculate the monthly returns from the prices (note that I am using only price returns, not
including dividends, for simplicity) as shown in F7:H66. The beta calculations are shown in J7:L7.
Note that I usually calculate the S&P 500 beta also as a check on the formula. It must always be
equal to 1.

Finally, I have also charted the characteristic lines for the securities using an XY Scatter chart. Your
X axis data is the returns on the S&P 500. The Y axis data is the returns from the security. Recall
that beta is the slope of this line. You can read it directly from the formula for the line in the chart.
n in J7:L7.

chart. Your
Historical stock prices provided by CSI, Inc. Historical mutual fund and industry prices provided by Media General Financial

S&P 500 INDEX (\$INX)
Monthly prices (Aug 1999 to Aug 2004)
DATE      S&P 500 IBM           MSFT                                Returns                                        Beta
Aug-99 1320.41        124.56      46.28               S&P 500    IBM       MSFT
Sep-99 1282.71        121.00      45.28                 -2.86%      -2.86%   -2.16%
Oct-99 1362.93          98.25     46.28                  6.25%     -18.80%    2.21%
Nov-99 1388.91        103.06      45.52                  1.91%       4.90%   -1.64%
Dec-99 1469.25        107.88      58.38                  5.78%       4.67% 28.23%
Jan-00 1394.46       112.25      48.94                 -5.09%       4.06% -16.17%
Feb-00 1366.42        102.75      44.69                 -2.01%      -8.46%   -8.68%
Mar-00 1498.58        118.38      53.13                  9.67%      15.21% 18.88%
Apr-00 1452.43        111.50      34.88                 -3.08%      -5.81% -34.35%
May-00 1420.60        107.31      31.28                 -2.19%      -3.76% -10.31%
Jun-00 1454.60        109.56      40.00                  2.39%       2.10% 27.87%
Jul-00 1430.83       112.25      34.91                 -1.63%       2.45% -12.74%
Aug-00 1517.68        132.02      34.91                  6.07%      17.61%    0.00%
Sep-00 1436.51        112.63      30.16                 -5.35%     -14.69% -13.61%
Oct-00 1429.40          98.50     34.44                 -0.49%     -12.54% 14.20%
Nov-00 1314.95          93.50     28.69                 -8.01%      -5.08% -16.70%
Dec-00 1320.28          85.00     21.69                  0.41%      -9.09% -24.40%
Jan-01 1366.01       112.00      30.53                  3.46%      31.76% 40.77%
Feb-01 1239.94          99.90     29.50                 -9.23%     -10.80%   -3.38%
Mar-01 1160.33          96.18     27.34                 -6.42%      -3.72%   -7.31%
Apr-01 1249.46        115.14      33.88                  7.68%      19.71% 23.88%
May-01 1255.82        111.80      34.59                  0.51%      -2.90%    2.11%
Jun-01 1224.38        113.50      36.50                 -2.50%       1.52%    5.52%
Jul-01 1211.23       105.21      33.10                 -1.07%      -7.30%   -9.33%
Aug-01 1133.58          99.95     28.53                 -6.41%      -5.00% -13.81%
Sep-01 1040.94          91.72     25.59                 -8.17%      -8.23% -10.31%
Oct-01 1059.78        108.07      29.08                  1.81%      17.83% 13.64%
Nov-01 1139.45        115.59      32.11                  7.52%       6.96% 10.42%
Dec-01 1148.08        120.96      33.13                  0.76%       4.65%    3.18%
Jan-02 1130.20       107.89      31.86                 -1.56%     -10.81%   -3.83%
Feb-02 1106.73          98.12     29.17                 -2.08%      -9.06%   -8.43%
Mar-02 1147.39        104.00      30.16                  3.67%       5.99%    3.38%
Apr-02 1076.92          83.76     26.13                 -6.14%     -19.46% -13.35%
May-02 1067.14          80.45     25.46                 -0.91%      -3.95%   -2.58%
Jun-02      989.82      72.00     27.35                 -7.25%     -10.50%    7.44%
Jul-02     911.62      70.40     23.99                 -7.90%      -2.22% -12.29%
Aug-02      916.07      75.38     24.54                  0.49%       7.07%    2.29%
Sep-02      815.28      58.31     21.87                -11.00%     -22.65% -10.88%
Oct-02      885.76      78.94     26.74                  8.64%      35.38% 22.25%
Nov-02      936.31      86.92     28.84                  5.71%      10.11%    7.87%
Dec-02      879.82      77.50     25.85                 -6.03%     -10.84% -10.37%
Jan-03    855.70   78.20   23.73   -2.74%    0.90%   -8.20%
Feb-03     841.15   77.95   23.70   -1.70%   -0.32%   -0.13%
Mar-03     848.18   78.43   24.21    0.84%    0.62%    2.15%
Apr-03     916.92   84.90   25.57    8.10%    8.25%    5.62%
May-03     963.59   88.04   24.61    5.09%    3.70%   -3.75%
Jun-03     974.50   82.50   25.64    1.13%   -6.29%    4.19%
Jul-03    990.31   81.25   26.41    1.62%   -1.52%    3.00%
Aug-03    1008.01   82.01   26.52    1.79%    0.94%    0.42%
Sep-03     995.97   88.33   27.80   -1.19%    7.71%    4.83%
Oct-03    1050.71   89.48   26.14    5.50%    1.30%   -5.97%
Nov-03    1058.20   90.54   25.71    0.71%    1.18%   -1.64%
Dec-03    1111.92   92.68   27.37    5.08%    2.36%    6.46%
Jan-04   1131.13   99.23   27.65    1.73%    7.07%    1.02%
Feb-04    1144.94   96.50   26.53    1.22%   -2.75%   -4.05%
Mar-04    1126.21   91.84   24.93   -1.64%   -4.83%   -6.03%
Apr-04    1107.30   88.17   26.13   -1.68%   -4.00%    4.81%
May-04    1120.68   88.59   26.23    1.21%    0.48%    0.38%
Jun-04    1140.84   88.15   28.56    1.80%   -0.50%    8.88%
Jul-04   1101.72   87.07   28.49   -3.43%   -1.23%   -0.25%
Aug-04    1104.24   84.69   27.30    0.23%   -2.73%   -4.18%
rovided by Media General Financial Services.

Beta
S&P 500 IBM      MSFT
1.00    1.44    1.61

S&P 500 Characteristic Line                  y=x
R² = 1
15.00%
S&P 500 Returns

10.00%
5.00%
0.00%
-5.00%
-10.00%
-15.00%
-15.00%   -10.00%   -5.00%     0.00%        5.00%      10.00%     15.00%
S&P 500 Returns

IBM Characteristic Line                   y = 1.4434x + 0.0016
R² = 0.4227
40.00%
30.00%
IBM Returns

20.00%
10.00%
0.00%
-10.00%
-20.00%
-30.00%
-30.00% -20.00% -10.00%    0.00%   10.00%     20.00%    30.00%    40.00%
S&P 500 Returns

y = 1.611x + 0.0021
MSFT Characteristic Line                        R² = 0.3648

60.00%
50.00%
40.00%
MSFT Returns

30.00%
20.00%
MSFT Returns    30.00%
20.00%
10.00%
0.00%
-10.00%
-20.00%
-30.00%
-40.00%
-40.00%   -20.00%   0.00%     20.00%   40.00%   60.00%
S&P 500 Returns

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Description: Historical Stock Prices At document sample