Compan

y
IBM
MMM
AEP

Alpha
-0.000473
0.000313
0.000359

Beta
0.94
0.88
0.52

R-Squared
0.4267
0.5509
0.1693

Zack's
Beta
0.77
1.07
0.24

How do Zacks numbers compare to yours?

Zacks betas for IBM and AEP are lower than from the regression. Zacks beta for MMM is
higher than from the regression.
Why might they be different (What may we have done differently than Zacks? What
assumptions did we make?)
The betas may be differently because Zacks may not have used the S&P 500 index in the data
analysis to retrieve the beta, like we did, or they may not have used two years worth of data as
well. Along with that, we calculated the beta using daily HPRs, while Zacks beta may be
calculated using monthly, quarterly, or semiannual HPRs. We also assumed that we found the
HPR with just the closing prices and Zacks may have used a combination of closing prices,
opening prices, and adjusted closing prices to retrieve the HPR. It may also depend on whether
on not dividends are included. Our measurements do not include dividends. Lastly, we
calculated our betas using S&P 500 index, while Zacks beta could have used the Dow Jones.