Question

47.00 $ Date S&P 500 Ad Close Price BV Ad Close Price HD Ad Close Price MSFT Ad Close Price FB Ad Close Price COST Ad Close Price 1/1/15 $ 1,994.99 $ 30.34 $ 94.43 $ 36.39 $ 75.91 $ 126.33 2/1/15 $ 2,104.50 $ 32.84 $ 103.78 $ 39.50 $ 78.97 $ 3/1/15 $ 2,057 89S 32.58 $ 102.75 $ 36.89 $ 82.22 $ 4/1/15 $ 2,085.51 $ 97.25 $ 78.77 $ 5/1/15 $ 2,107.39 $ 30.45 S 101 28 $ 42.51 $ 79.19 $ 130 32 6/1/15 $ 2,063.11 $ 28.62 $ 101.02 $ 40.31 $ 85.77 $ 123.91 7/1/15 $ 2,103.84 $ 28 53 $ 106.95 $ 42.64 $ 94.01 $ 13 31 8/1/15 $ 1972.18 $ 32.46 $ 105.43 $ 39.74 $ 89.73 $ 128.49 9/1/15 $ 1920.03 $ 32.80 $ 105.54 $ 40.68 $ 89.90 $ 133.00 10/1/15 $ 2.079.36 $ 31 14 $ 113.56 $ 48.38 $ 101 97 $ 145.47 11/1/15 $ 2080 41 s 28.25 $ 122.97 $ 49.96 $ 104.24 $ 148 SO 12/1/15 s 2,043.94 $ 27.07 $ 121 47 $ 5134 S 104.66 $ 1/1/16 $ 1,940.24 $ 25.02 $ 116.02 $ 5098 $ 112 21 $ 139.39 2/1/16 $ 1,932 233 29.01 $ 114.51 $ 106.92 $ 1838 3/1/16 $ 2,059.74 $ 2906 $ 121 10 $ 5147 S 114.10 $ 145.74 4/1/16 $ 2,055.30 $ 29.38 $ 124.20 $ 46.49 $ 117.58 $ 137.00 5/1/16 $ 2,096.95 $ 29.46 $ 122.56 $ 49.39 $ 118.81 $ 138.00 6/1/16 $ 2,098.86 $ 28.02 $ 119.06 $ 48.02 $ 114.28 $ 145.67 7/1/16 $ 2,173. 31.05 $ 128.90 $ 53.19 $ 123.94 $ 155 11 8/1/16 $ 2,170.95 $ 35.57 S 125.00 $ 53.99 $ 125 12 s 150.35 9/1/16 $ 2.168.27 $ 35.29 $ 120.60 $ 5439 $ 128 27 $ 141.85 10/1/16 $ 2,126.15 $ 36.23 $ 114 35 $ 56.59 $ 130.99 $ 137.53 11/1/16 $ 2,198.81 $ 42.55 $ 121 28 $ 56.91 $ 118.42 $ 139.62 12/1/16 $ 2,238,83 $ 39.73 $ 126,33 $ 59.08 $ 115.05 $ 149 37 1/1/17 $ 2,278.87 $ 41.71 $ 129.63 $ 61.46 $ 130.32 $ 152.95 2/1/17 $ 2,353.64 $ 41 34 $ 136.53 $ 60.83 $ 135.54 $ 165 30 3/1/17 $ 2162.72 $ 46.00 $ 138 34 $ 62.99 $ 142.05 $ 156.87 4/1/17 S 2,384.20 $ 48.90 $ 147.97 $ 150.25 $ 166.05 5/1/17 $ 2,411.80 $ 56.05 $ 145.52 $ 66.80 $ 151.45 $ 168.79 6/1/17 $ 2,423.41 $ 54.11 $ 146.25 $ 66.31 $ 150.98 $ 156.11 7/1/17 $ 2470 30 $ 55.39 $ 142.63 $ 69.94 $ 169.25 $ 154.72 8/1/ 15 2,471.65 $ 51 52 S 171.97 $ 152.99 9/1/17 $ 2,519.36 $ 54.08 $ 156.85 $ 72.04 $ 170.87 $ 160.88 10/1/17 $ 2,575.26 $ 53.46 $ 158.99 $ 80.44 $ 180 06 $ 157.73 11/1/17 $ 2,586 MS 56.93 $ 172.46 $ 81.40 $ 177.18 $ 180.50 12/1/17 $ 2,673.61 $ 65.39 $ 182.69 $ 83.14 $ 176.46 $ 182.79 1/1/18 $ 2,823.81 $ 70.16 $ 193.65 $ 92.35 S 186.89 $ 191 39 2/1/18 $ 2,713.83 $ 69.56 $ 175.69 $ 91.14 $ 178.32 $ 187.49 3/1/18 $ 2,640.87 $ 67.21 $ 171.81 $ 89.13 $ 159.79 $ 185 56 4/1/18 S 2,648.05 $ 73.95 $ 179.15 $ 172.00 $ 194.15 5/1/18 $ 2,705.27 $ 65.96 $ 180 84 S 95 52 $ 191.78 $ 195.22 6/1/18 $ 2,718.37 $ 72.08 $ 190.19 $ 96.71 $ 194 32 $ 206 39 7/1/18 $ 2,816.29 $ 72.96 $ 192 55 $ 104.04 $ 172.58 $ 216.00 8/1/18 $ 2.901 52 $ 77.36 $ 195.72 $ 110.17 $ 175.73 $ 9/1/18 $ 2,913.88 $ 77.17 $ 202.97 $ 112.60 $ 164.46 $ 232.55 10/1/18 $ 2,711.74 $ 68 62 $ 172.33 $ 105.16 $ 151.79 $ 226.36 11/1/18 $ 2,760 17 S 63.17 $ 176.68 $ 109.17 $ 140.61 $ 228.98 12/1/18 $ 2.50685 $ 51.79 $ 169 M S 131.09 $ 202.17 1/1/19 $ 2,704.10 $ 5837 $ 180.90 $ 103 25 $ 166.59 $ 213.00 2/1/19 $ 2,784.49 $ 67.83 $ 182.49 $ 110.77 $ 161 45 $ 217.08 3/1/19 $ 2.834.40 $ 2002 $ 189.14 $ 117.12 $ 166.69 $ 24095 4/1/19 $ 2.945.83 $ 73.84 $ 202.28 $ 129.69 $ 193.40 $ S/1/19 $ 2,752.06 $ 62.19 $ 188.53 $ 122.81 $ 177.47 $ 238.41 6/1/19 $ 2.941.76 $ 69.20 $ 206.52 $ 133.52 $ 193.00 $ 263.68 7/1/19 $ 2.980 19 $ 76.53 $ 213.69 $ 135.82 $ 194 23 $ 275.02 142.89 $

1. What is the standard deviation for Facebook, Inc. (FB)?

2. What is the correlation between FB and COST?

3. What is the beta for Costo Wholesale Corporation (COST)?

Answer 1

Price 6. 19% 61.46 60.83 S&P 500 BBY HD MSFT Date Price return Price Price 01-01-2015 1994.98999 30.34 94.43 36.39 01-02-2015 2104.5 5.20% 32.84 103.78 39.50 01-03-2015 2067.889893 -1.77% 32.58 102.75 36.89 01-04-2015 2085.51001 0.84% 30.41 97.25 44.13 01-05-2015 2107.389893 1.04% 30.45 101.28 42.51 01-06-2015 2063.110107 -2.15% 28.62 101.02 40.31 01-07-2015 2103.840088 1.94% 28.53 106.95 42.64 01-08-2015 1972. 180054 -6.68% 32.46 106.43 39.74 01-09-2015 1920.030029 -2.72% 32.80 105.54 40.68 01-10-2015 2079.360107 7.66% 31.14 113.56 48.38 01-11-2015 2080.409912 0.05% 28.25 122.97 49.96 01-12-2015 2043.939941 -1.78% 27.07 121.47 51.34 01-01-2016 1940.23999 -5.34% 25.02 116.02 50.98 01-02-2016 1932.22998 -0.41% 29.01 114.51 47.08 01-03-2016 2059.73999 29.06 123.1 51.47 01-04-2016 2065.300049 0.27% 29.38 124.2 46.48 01-05-2016 2096.949951 1.51% 29.46 122.56 49.39 01-06-2016 2098.860107 0.09% 28.02 119.06 48.02 01-07-2016 2173.600098 3.44% 31.06 128.9 53.19 01-08-2016 2170.949951 -0.12% 35.57 125.06 53.93 01-09-2016 2168.27002 -0.12% 35.29 120.6 54.39 01-10-2016 2126. 149902 -1.98% 36.23 114.35 56.59 01-11-2016 2198.810059 3.30% 42.55 121.28 56.91 01-12-2016 2238.830078 1.79% 39.73 126.33 59.08 01-01-2017 2278.870117 1.76% 41.71 129.63 01-02-2017 2363.639893 3.59% 41.34 136.53 01-03-2017 2362.719971 -0.04% 46.04 138.34 62.99 01-04-2017 2384. 199951 0.90% 48.90 147.97 65.48 01-05-2017 2411.800049 1.14% 56.05 145.52 66.80 01-06-2017 2423.409912 0.48% 54.11 146.25 66.31 01-07-2017 2470.300049 1.90% 55.39 142.63 69.94 01-08-2017 2471.649902 0.05% 51.52 142.89 71.93 01-09-2017 2519.360107 1.89% 54.08 156.86 72.04 01-10-2017 2575.26001 2.17% 53.46 158.99 80.44 01-11-2017 2584.840088 0.37% 56.93 172.46 81.40 01-12-2017 2673.610107 3.32% 65.39 182.69 83.14 01-01-2018 2823.810059 5.32% 70.16 193.65 92.35 01-02-2018 2713.830078 -4.05% 69.56 175.69 91.14 01-03-2018 2640.870117 -2.76% 67.21 171.81 89.13 01-04-2018 2648.050049 0.27% 73.96 179.15 91.32 01-05-2018 2705.27002 2.12% 65.96 180.84 96.52 01-06-2018 2718.370117 0.48% 72.08 190.19 96.71 01-07-2018 2816.290039 3.48% 72.96 192.55 104.04 01-08-2018 2901.52002 2.94% 77.36 195.72 110.17 01-09-2018 2913.97998 0.43% 77.17 202.97 112.60 01-10-2018 2711.73999 -7.46% 68.62 172.33 105.16 01-11-2018 2760.169922 1.75% 63.17 176.68 109.17 01-12-2018 2506.850098 -10.11% 51.79 169.36 100.43 01-01-2019 2704.100098 7.29% 58.37 180.9 103.26 01-02-2019 2784.48999 2.89% 67.83 182.49 110.77 01-03-2019 2834.399902 1.76% 70.02 189.14 117.12 01-04-2019 2945.830078 3.78% 73.84 202.28 129.69 01-05-2019 2752.060059 -7.04% 62.19 188.53 122.81 01-06-2019 2941.76001 6.45% 69.20 206.52 133.52 01-07-2019 2980.379883 1.30% 76.53 213.69 135.82 Standard Deviation of FB 36.5044543 Correlation Betwen FB and COST 0.77855968 Covariance of COSTand S&P 500 0.00110416 Variance of S&P 500 0.00128431 Beta of COST = Covariance of COST & S&P 500 7 Variance of S&P 500 0.85973453 FB Price 75.910004 78.970001 82.220001 78.769997 79.190002 85.769997 94.010002 89.730003 89.900002 101.970001 104.239998 104.660004 112.209999 106.919998 114.099998 117.580002 118.809998 114.279999 123.940002 126. 120003 128.270004 130.990005 118.419998 115.050003 130.320007 135.539993 142.050003 150.25 151.460007 150.979996 169.25 171.970001 170.869995 180.059998 177.179993 176.460007 186.889999 178.320007 159.789993 172 191.779999 194.320007 172.580002 175.729996 164.460007 151.789993 140.610001 131.089996 166.690002 161.449997 166.690002 193.399994 177.470001 193 194.229996 COST Price return 126.33 129.84 2.70% 138.62 6.33% 130.88 -5.91% 130.82 -0.05% 123.91 -5.58% 133.31 7.05% 128.49 -3.75% 133.00 3.39% 145.47 8.57% 148.50 2.04% 148.96 0.31% 139.39 -6.87% 138.38 -0.73% 145.74 5.05% 137.00 -6.38% 138.00 0.72% 145.67 5.27% 155.11 6.09% 150.35 -3.16% 141.85 -6.00% 137.53 3.14% 139.62 1.49% 149.37 6.53% 152.96 2.34% 165.30 7.47% 156.87 -5.38% 166.06 5.54% 168.79 1.61% 156.11 -8.12% 154.72 -0.90% 152.99 -1.13% 160.88 4.90% 157.73 -1.99% 180.60 12.66% 182.79 1.20% 191.39 187.49 -2.08% 185.56 -1.04% 194.15 4.43% 195.22 0.54% 206.39 5.42% 216.00 4.45% 230.24 6.19% 232.55 0.99% 226.36 -2.73% 228.98 1.15% 202.17 -13.26% 213.00 5.09% 217.08 1.88% 240.95 9.91% 244.33 238.41 -2.48% 263.68 9.58% 275.02 4.13% 4.49% 138%

1. Standard Deviation of FB					36.5044543
2. Correlation Betwen FB and COST					0.77855968
Covariance of COSTand S&P 500					0.00110416
Variance of S&P 500					0.00128431
3. Beta of COST = Covariance of COST & S&P 500 / Variance of S&P 500					0.85973453