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The table lists the monthly total returns on Wal-Mart Stores Inc. common stock and the...

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Accounting

The table lists the monthly total returns on Wal-Mart Stores Inc. common stock and the market rates of return for a 24-month period.

Observation Month Wal-Mart rate of return (%) Market rate of return (%)
1 Aug 2014 3.29 4.18
2 Sep 2014 1.28 -2.11
3 Oct 2014 -0.26 2.74
4 Nov 2014 14.78 2.43
5 Dec 2014 -1.35 -0.01
6 Jan 2015 -1.05 -2.77
7 Feb 2015 -1.24 5.78
8 Mar 2015 -1.41 -1.01
9 Apr 2015 -5.11 0.42
10 May 2015 -4.24 1.39
11 Jun 2015 -4.50 -1.70
12 Jul 2015 1.48 1.65
13 Aug 2015 -9.46 -6.00
14 Sep 2015 0.17 -2.95
15 Oct 2015 -11.72 7.86
16 Nov 2015 2.80 0.56
17 Dec 2015 5.05 -2.04
18 Jan 2016 8.25 -5.67
19 Feb 2016 -0.03 -0.02
20 Mar 2016 4.01 7.03
21 Apr 2016 -2.37 0.63
22 May 2016 6.62 1.79
23 Jun 2016 3.16 0.23
24 Jul 2016 -0.07 3.97

Estimate beta to two decimal places for Wal-Mart based on this data. If beta is negative, then include a minus sign. Hint: see Examples 18 and 19 in the lecture.

0.42
-0.37
0.20
-0.04
0.89

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