Step by step solution for number 2 question. I. The Beta of a Stock You want to invest in the stock marketbut are not sure which stock to purchase. Information is thekey to making an informed investment decision. One pieceof information that many stock analysts use is the beta ofthe stock. Go to Wikipedia (http://en.wikipedia.org/wiki/Beta_%28finance%29) and research what beta measures andwhat it represents.1. Approximating the beta of a stock. Choose a well-knowncompany such as Google or Coca-Cola. Go to a websitesuch as Yahoo! Finance (http://finance.yahoo.com/) andfind the weekly closing price of the company's stock forthe past year. Then find the closing price of the Standard &Poor's 500 (S&P500) for the same time period. To get thehistorical prices in Yahoo! Finance click the price graph,choose Basic Chart, then scroll down and select HistoricalPrices. Choose the appropriate time period and selectWeekly. Finally, select Download to Spreadsheet. Repeatthis for the S&P500, and copy the data into the same spread-sheet. Finally, rearrange the data in chronological order. Besure to expand the selection to sort all the data. Now, usingthe adjusted close price, compute the percentage change inР. - Р.price for each week using the formula %changeP.For example, if week 1 price is in cell D1 and week 2 price isD2 – D1in cell D2, then % changeRepeat this for theDiS&P500 data.2. Using Excel to draw a scatter diagram. Treat thepercentage change in the S&P500 as the independentvariable and the percentage change in the stock you chose as the dependent variable. The easiest way to draw a scatterdiagram in Excel is to place the two columns of data nextto each other (for example, have the percentage change inthe S&P500 in column F and the percentage change in thestock you chose in column G). Then highlight the data andselect the Scatter Diagram icon under Insert. Comment onthe type of relation that appears to exist between the twovariables.

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The stock we have selected is Medtronic. Listed on NYSE, its ticker is MDT. It is largest Medical…

2. Using Excel to draw a scatter diagram. Treat the percentage change in the S&P500 as the independent variable and the percentage change in the stock you chose