Acct 608 Molson Coors Brewing Company

THE ASSIGNMENT1. Using Thomson ONE Business School Edition download ten years of stock price and market index information. Use Excel’s “Slope” function to estimate a beta with these data. Next, using Value Line find an estimate of the company’s beta. Solutions: With the help of Slope function, we could arrive at a Beta value of “4” for the company “Molson Coors Brewing Company”. Using the Value Line, the company’s beta found out is 0.60. a. Try to think of reasons why your beta estimate would be different than that of ValueLine.Solutions: The beta value , which we was estimated has a different value than that of ValueLine because we have considered the closing stock prices and closing index values calculated the slope considering the last thirteen years. The value has been marginalized and in between there was market crash in financial market since the 2000. Hence the estimated beta for the company, at higher side. Moreover the market index (S&P 500) is consisting of 500 stocks majorly contributing towards market capitalization. Hence while we are calculating the slope, the value arrived at, may be at higher side. b. Explain, what the figure you found (don’t forget to