Question 1005 variance, covariance, beta, CAPM, risk, no explanation
| Price Data Time Series | ||
| Sourced from Yahoo Finance Historical Price Data | ||
| Date | Adjusted close | |
| S&P500 Index (^GSPC) |
Tesla (TSLA) |
|
| 2017, Fri 29 Dec | 2673.61 | 62.27 |
| 2018, Mon 31 Dec | 2506.85 | 66.56 |
| 2019, Tue 31 Dec | 3230.78 | 83.67 |
| 2020, Tue 31 Dec | 3756.07 | 705.67 |
| Source: Yahoo Finance. | ||
Which of the following statements about the above table which is used to calculate Tesla's equity beta is NOT correct? Over the last 4 years the historical: