Month Monthly Returns (%) Month Monthly Returns (%) Month Monthly Returns (%) Ended Yahoo Google S&P500 Ended Yahoo Google S&P500 Ended Yahoo Google S&P500 Dec-07 -13.241 -0.219 -0.692 Dec-06 -5.442 -5.018 1.403 Dec-05 -2.610 2.457 0.036 Nov-07 -13.794 -1.980 -4.182 Nov-06 2.544 1.767 1.899 Nov-05 8.818 8.806 3.778 Oct-07 15.861 24.632 1.590 Oct-06 4.193 18.534 3.257 Oct-05 9.249 17.595 -1.668 Sep-07 18.093 10.096 3.736 Sep-06 -12.314 6.174 2.575 Sep-05 1.561 10.650 0.810 Aug-07 -2.237 1.029 1.497 Aug-06 6.227 -2.087 2.376 Aug-05 -0.060 -0.612 -0.912 Jul-07 -14.302 -2.430 -3.097 Jul-06 -17.758 -7.805 0.616 Jul-05 -3.781 -2.172 3.717 Jun-07 -5.470 4.979 -1.660 Jun-06 4.463 12.778 0.133 Jun-05 -6.855 6.088 0.143 May-07 2.354 5.628 3.486 May-06 -3.630 -11.035 -2.875 May-05 7.826 26.032 3.179 Apr-07 -10.387 2.885 4.428 Apr-06 1.612 7.164 1.342 Apr-05 1.770 21.877 -1.896 Mar-07 1.393 1.938 1.116 Mar-06 0.624 7.551 1.244 Mar-05 5.051 -3.979 -1.769 Feb-07 9.007 -10.379 -1.950 Feb-06 -6.735 -16.188 0.271 Feb-05 -8.350 -3.900 2.103 Jan-07 10.846 8.908 1.511 Jan-06 -12.264 4.291 2.648 Jan-05 -6.555 1.468 -2.437 Question: (Use table above to solve) Segregate the return data in the above table into bull and bear markets, using the S&P 500 index as the proxy for the market. A.) What was the average return for the two companies during these two types of markets? What was the return for the S&P 500 index during those times? B.) Using the average return measures in a), compute the beta for Yahoo and Google. C.) According to these beta estimates, which company is riskier? Month Monthly Returns (%) Month Monthly Returns (%) Month Monthly Returns (%) Ended Yahoo Google S&P500 Ended Yahoo Google S&P500 Ended Yahoo Google S&P500 Dec-07 -13.241 -0.219 -0.692 Dec-06 -5.442 -5.018 1.403 Dec-05 -2.610 2.457 0.036 Nov-07 -13.794 -1.980 -4.182 Nov-06 2.544 1.767 1.899 Nov-05 8.818 8.806 3.778 Oct-07 15.861 24.632 1.590 Oct-06 4.193 18.534 3.257 Oct-05 9.249 17.595 -1.668 Sep-07 18.093 10.096 3.736 Sep-06 -12.314 6.174 2.575 Sep-05 1.561 10.650 0.810 Aug-07 -2.237 1.029 1.497 Aug-06 6.227 -2.087 2.376 Aug-05 -0.060 -0.612 -0.912 Jul-07 -14.302 -2.430 -3.097 Jul-06 -17.758 -7.805 0.616 Jul-05 -3.781 -2.172 3.717 Jun-07 -5.470 4.979 -1.660 Jun-06 4.463 12.778 0.133 Jun-05 -6.855 6.088 0.143 May-07 2.354 5.628 3.486 May-06 -3.630 -11.035 -2.875 May-05 7.826 26.032 3.179 Apr-07 -10.387 2.885 4.428 Apr-06 1.612 7.164 1.342 Apr-05 1.770 21.877 -1.896 Mar-07 1.393 1.938 1.116 Mar-06 0.624 7.551 1.244 Mar-05 5.051 -3.979 -1.769 Feb-07 9.007 -10.379 -1.950 Feb-06 -6.735 -16.188 0.271 Feb-05 -8.350 -3.900 2.103 Jan-07 10.846 8.908 1.511 Jan-06 -12.264 4.291 2.648 Jan-05 -6.555 1.468 -2.437 Solution According to Beta estimates Google is more risky than Yahoo because the beta is higher for google( 1.255) with Yahoo(0.987)ABCMonthMonthly Returns (%)Using excel Average return =AVERAGE(A1:A36)Using excel Average return =AVERAGE(B1:B36)Using excel Average return =AVERAGE(C1:C36)Beta of.