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The use of benchmarks to compare risk This units notes discussed the measurement...

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Accounting

The use of benchmarks to compare risk

This units notes discussed the measurement of risk. Beta, which measures the co-movement of stock prices with the market, provides one indicator of systematic risk. The S&P 500 index, a proxy for the equity market, often serves as the benchmark.

In this enrichment activity, measure and interpret the risk of Apple and Tesla for the period of July 1, 2016 to June 1, 2021 by calculating the beta of both companies. Use the S&P 500 index as the benchmark. The data sets are provided for this activity.

Note:

To calculate the real-time beta value for Apple and Tesla, you can download the most current data sets from Yahoo Finance. Use the five-year monthly data in your calculations to check your results against the beta values provided for the companies on the Yahoo Finance Summary page. Please refer to the downloadable Excel example in the Unit 1 notes for comprehensive instructions.

Adj Close - AAPL % change in AAPL Adj Close - TSLA % change in TSLA Adj Clos - GSPC %change in GSPC
24.166025 1.81% 46.958 -9.70% 2,173.60
24.604315 7.13% 42.402 -3.76% 2,170.95
26.358023 0.43% 40.806 -3.09% 2,168.27
26.472267 -2.66% 39.546001 -4.21% 2,126.15
25.768143 5.33% 37.880001 12.82% 2,198.81
27.142502 4.77% 42.737999 17.90% 2,238.83
28.438457 12.89% 50.386002 -0.77% 2,278.87
32.103706 5.32% 49.998001 11.32% 2,363.64
33.812786 -0.01% 55.66 12.85% 2,362.72
33.810429 6.34% 62.813999 8.58% 2,384.20
35.954628 -5.33% 68.202003 6.04% 2,411.80
34.037441 3.27% 72.321999 -10.55% 2,423.41
35.150578 10.27% 64.694 10.03% 2,470.30
38.759476 -5.66% 71.18 -4.16% 2,471.65
36.567486 9.68% 68.220001 -2.81% 2,519.36
40.107498 1.66% 66.306 -6.84% 2,575.26
40.77422 -1.17% 61.77 0.81% 2,647.58
40.296925 -1.06% 62.27 13.80% 2,673.61
39.868317 6.38% 70.862 -3.18% 2,823.81
42.413807 -5.42% 68.612 -22.42% 2,713.83
40.114544 -1.50% 53.226002 10.43% 2,640.87
39.512039 13.08% 58.779999 -3.12% 2,648.05
44.678776 -0.56% 56.945999 20.45% 2,705.27
44.428638 2.80% 68.589996 -13.07% 2,718.37
45.67189 19.62% 59.627998 1.18% 2,816.29
54.633949 -0.48% 60.332001 -12.23% 2,901.52
54.370342 -3.05% 52.953999 27.40% 2,913.98
52.713268 -18.40% 67.463997 3.90% 2,711.74
43.011681 -11.36% 70.096001 -5.04% 2,760.17
38.124844 5.52% 66.559998 -7.75% 2,506.85
40.227585 4.03% 61.403999 4.19% 2,704.10
41.849354 10.17% 63.976002 -12.51% 2,784.49
46.106709 5.64% 55.972 -14.71% 2,834.40
48.70879 -12.76% 47.737999 -22.43% 2,945.83
42.494881 13.49% 37.032001 20.68% 2,752.06
48.226288 7.64% 44.692001 8.12% 2,941.76
51.910507 -2.02% 48.321999 -6.62% 2,980.38
50.862747 7.70% 45.122002 6.76% 2,926.46
54.781124 11.07% 48.174 30.74% 2,976.74
60.84454 7.43% 62.984001 4.77% 3,037.56
65.367035 10.21% 65.987999 26.79% 3,140.98
72.039879 5.40% 83.666 55.52% 3,230.78
75.930748 -11.68% 130.113998 2.68% 3,225.52
67.062218 -6.76% 133.598007 -21.56% 2,954.22
62.531918 15.54% 104.800003 49.21% 2,584.59
72.247726 8.22% 156.376007 6.79% 2,912.43
78.18396 15.05% 167 29.32% 3,044.31
89.950027 16.51% 215.962006 32.50% 3,100.29
104.803635 21.44% 286.152008 74.15% 3,271.12
127.2714 -10.09% 498.320007 -13.91% 3,500.31
114.428673 -6.00% 429.01001 -9.55% 3,363.00
107.561584 9.36% 388.040009 46.27% 3,269.96
117.630028 11.65% 567.599976 24.33% 3,621.63
131.333557 -0.55% 705.669983 12.45% 3,756.07
130.611008 -8.11% 793.530029 -14.87% 3,714.24
120.020378 0.88% 675.5 -1.12% 3,811.15
121.081955 7.62% 667.929993 6.21% 3,972.89
130.310547 -5.21% 709.440002 -11.87% 4,181.17
123.520439 10.10% 625.219971 8.71% 4,204.11
135.993057 6.50% 679.700012 1.10% 4,297.50
144.830231 -100.00% 687.200012 -100.00% 4,395.26

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