Hindustan Lever Limited: Stability of Beta

Assignment:
(1)
Calculate HLL's equity beta using weekly closing share
price for HLL and Sensex from 10 Jan-92 to 26 Dec.-97.
(2) Calculate HLLs beta based on weekly share prices
for two periods, 10 Jan-92 to 24 Dec-94 and 24 Dec-94
to 26 Dec-97.
(3) Do you obtain different estimates of beta for these
two perids? What are the possible reasons for the
difference?
(4)
What do you understand by beta instability?
You may use "Regression" in Excel to calculate
beta. Go to Tools>Data analysis>Regression

Hindustan Lever Limited: Share Price Data

Share Price
Week
Week Opening High
Low
Closing
Sensex
10-Jan-92
1
173.75
173.75
162.50
165.00 1972.53
17-Jan-92
2
165.00
168.75
161.25
167.50 2115.89
24-Jan-92
3
165.00
190.00
165.00
185.00 2139.33
31-Jan-92
4
200.00
245.00
187.50
235.00 2302.54
7-Feb-92
5
225.00
230.00
210.00
210.00 2194.48
14-Feb-92
6
208.75
237.50
207.50
230.00 2322.79
21-Feb-92
7
232.50
250.00
230.00
240.00 2454.66
28-Feb-92
8
242.50
325.00
242.50
317.50 2759.22
6-Mar-92
9
415.00
440.00
415.00
430.00 3472.78
13-Mar-92
10
437.50
437.50
340.00
370.00 3259.36
20-Mar-92
11
370.00
385.00
350.00
352.50 3243.53
27-Mar-92
12
425.00
430.00
400.00
406.25 3791.18
3-Apr-92
13
420.00
500.00
400.00
415.00 4238.25
10-Apr-92
14
430.00
430.00
390.00
410.00 4306.43
17-Apr-92
15
410.00
410.00
385.00
390.00 4163.02
24-Apr-92
16
400.00
420.00
400.00
405.00 4467.32
1-May-92
17
375.00
390.00
360.00
375.00 3887.72
8-May-92
18
370.00
380.00
320.00
375.00 3658.00
15-May-92
19
375.00
375.00
300.00
350.00 3394.48
22-May-92
20
355.00
365.00
345.00
355.00 3435.07
29-May-92
21
345.00
350.00
285.00
312.50 3006.08
5-Jun-92
22
310.00
336.25
305.00
330.00 3086.74
12-Jun-92
23
325.00
332.50
325.00
330.00 3140.80
17-Jul-92
24
315.00
320.00
300.00
312.50 3080.54
24-Jul-92
25
305.00
322.50
297.50
300.00 2806.31
31-Jul-92
26
300.00
315.00
295.00
310.00 2678.34
7-Aug-92
27
310.00
312.50
302.50
305.00 2727.06
14-Aug-92
28
305.00
335.00
305.00
332.50 2590.68
21-Aug-92
29
325.00
352.50
325.00
342.50 2795.18
28-Aug-92
30
340.00
345.00
322.50
340.00 3034.94
4-Sep-92
31
347.50
355.00
337.50
342.50 3031.63
11-Sep-92
32
340.00
350.00
335.00
342.50 3166.10
18-Sep-92
33
345.00
380.00
337.50
370.00 3219.92
25-Sep-92
34
367.50
367.50
345.00
350.00 3383.62
2-Oct-92
35
352.50
352.50
335.00
342.50 3256.59
9-Oct-92
36
340.00
357.50
325.00
352.50 3315.70
16-Oct-92
37
350.00
352.50
335.00
348.75 3275.57
23-Oct-92
38
345.00
350.00
340.00
348.75 3086.45
30-Oct-92
39
345.00
352.50
332.50
342.50 2987.29
6-Nov-92
40
340.00
352.50
340.00
347.50 2833.34
13-Nov-92
41
347.50
350.00
330.00
337.50 2756.19
20-Nov-92
42
340.00
341.25
330.00
340.00 2586.68
27-Nov-92
43
335.00
343.75
335.00
340.00 2479.56
4-Dec-92
44
340.00
395.00
340.00
382.50 2486.41
11-Dec-92
45
370.00
375.00
355.00
357.50 2696.86
18-Dec-92
46
357.50
362.50
337.50
352.50 2535.87
25-Dec-92
47
350.00
375.00
350.00
370.00 2476.89
8-Jan-93
48
367.50
370.00
342.50
350.00 2615.37

15-Jan-93
22-Jan-93
29-Jan-93
5-Feb-93
12-Feb-93
19-Feb-93
26-Feb-93
5-Mar-93
12-Mar-93
19-Mar-93
26-Mar-93
2-Apr-93
9-Apr-93
16-Apr-93
23-Apr-93
30-Apr-93
7-May-93
14-May-93
21-May-93
28-May-93
4-Jun-93
11-Jun-93
18-Jun-93
25-Jun-93
2-Jul-93
9-Jul-93
16-Jul-93
23-Jul-93
30-Jul-93
6-Aug-93
13-Aug-93
20-Aug-93
27-Aug-93
3-Sep-93
10-Sep-93
17-Sep-93
24-Sep-93
1-Oct-93
8-Oct-93
15-Oct-93
22-Oct-93
29-Oct-93
5-Nov-93
12-Nov-93
19-Nov-93
26-Nov-93
3-Dec-93
10-Dec-93
17-Dec-93
7-Jan-94
14-Jan-94

49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99

352.50
370.00
361.25
400.00
385.00
375.00
370.00
385.00
357.50
380.00
380.00
370.00
373.75
371.25
372.50
370.00
355.00
390.00
385.00
377.50
368.75
373.75
392.50
370.00
365.00
367.50
360.00
342.50
340.00
362.50
367.50
380.00
420.00
427.50
430.00
490.00
510.00
482.50
457.50
465.00
462.50
472.50
467.50
462.50
477.50
502.50
575.00
540.00
550.00
560.00
590.00

372.50
377.50
407.50
400.00
397.50
375.00
395.00
415.00
370.00
392.50
381.25
375.00
377.50
376.25
377.50
373.75
392.50
395.00
388.75
380.00
377.50
395.00
392.50
375.00
371.25
367.50
360.00
343.75
362.50
372.50
382.50
435.00
435.00
440.00
485.00
515.00
512.50
495.00
470.00
467.50
482.50
476.25
467.50
485.00
502.50
585.00
585.00
565.00
580.00
585.00
710.00

352.50
357.50
361.25
380.00
375.00
362.50
365.00
350.00
350.00
375.00
375.00
355.00
370.00
360.00
365.00
340.00
353.75
375.00
376.25
362.50
366.25
373.75
371.25
363.75
365.00
360.00
343.75
322.50
337.50
362.00
363.75
375.00
417.50
420.00
415.00
490.00
480.00
452.50
445.00
460.00
462.50
465.00
455.00
462.50
472.50
495.00
540.00
530.00
540.00
535.00
585.00

370.00
362.50
400.00
385.00
380.00
367.50
387.50
366.25
370.00
380.00
377.50
370.00
375.00
375.00
375.00
360.00
390.00
385.00
380.00
368.75
375.00
395.00
372.50
370.00
367.50
363.75
345.00
342.50
362.50
367.50
380.00
435.00
430.00
430.00
482.50
502.50
485.00
456.25
460.00
462.50
475.00
467.50
465.00
475.00
495.00
580.00
550.00
545.00
575.00
577.50
675.00

2420.67
2525.54
2542.39
2680.79
2648.89
2745.48
2671.37
2813.15
2471.74
2330.09
2376.76
2341.42
2311.44
2310.91
2299.78
2100.67
2122.30
2219.24
2356.63
2357.71
2165.58
2336.62
2404.00
2226.68
2203.96
2233.86
2214.83
2131.21
2159.77
2328.21
2382.18
2522.48
2742.37
2668.96
2664.06
2705.07
2763.59
2722.52
2662.84
2671.08
2710.92
2721.76
2673.74
2664.72
2793.23
2972.86
3233.40
3219.23
3401.90
3454.81
3346.06

21-Jan-94
28-Jan-94
4-Feb-94
11-Feb-94
18-Feb-94
25-Feb-94
4-Mar-94
11-Mar-94
18-Mar-94
25-Mar-94
1-Apr-94
8-Apr-94
15-Apr-94
22-Apr-94
29-Apr-94
6-May-94
13-May-94
20-May-94
27-May-94
3-Jun-94
10-Jun-94
17-Jun-94
24-Jun-94
1-Jul-94
8-Jul-94
15-Jul-94
22-Jul-94
29-Jul-94
5-Aug-94
12-Aug-94
19-Aug-94
26-Aug-94
2-Sep-94
9-Sep-94
16-Sep-94
23-Sep-94
30-Sep-94
7-Oct-94
14-Oct-94
21-Oct-94
28-Oct-94
4-Nov-94
11-Nov-94
18-Nov-94
25-Nov-94
2-Dec-94
9-Dec-94
16-Dec-94
23-Dec-94
6-Jan-95
13-Jan-95

100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150

675.00
620.00
690.00
730.00
780.00
750.00
825.00
715.00
720.00
750.00
737.50
755.00
765.00
745.00
742.50
742.50
710.00
705.00
685.00
675.00
680.00
720.00
710.00
662.50
635.00
665.00
655.00
655.00
660.00
725.00
695.00
680.00
670.00
680.00
695.00
690.00
680.00
660.00
682.50
665.00
662.50
682.50
685.00
635.00
662.50
660.00
630.00
580.00
600.00
595.00
565.00

720.00
750.00
770.00
835.00
780.00
820.00
845.00
790.00
755.00
760.00
767.50
770.00
770.00
750.00
747.50
742.50
718.75
711.25
690.00
685.00
740.00
725.00
710.00
662.50
667.50
665.00
662.50
670.00
755.00
725.00
700.00
687.50
690.00
695.00
705.00
695.00
695.00
690.00
687.50
680.00
690.00
690.00
695.00
670.00
670.00
670.00
630.00
605.00
600.00
600.00
575.00

610.00
620.00
690.00
730.00
705.00
745.00
710.00
670.00
720.00
732.50
735.00
735.00
747.50
727.50
735.00
670.00
703.75
685.00
660.00
662.50
672.50
690.00
665.00
625.00
630.00
650.00
650.00
645.00
660.00
655.00
675.00
655.00
665.00
680.00
680.00
672.50
650.00
650.00
667.50
660.00
662.50
680.00
640.00
625.00
640.00
630.00
575.00
575.00
582.50
560.00
547.50

615.00
710.00
710.00
770.00
735.00
790.00
725.00
715.00
750.00
737.50
760.00
762.50
750.00
742.50
742.50
712.50
705.00
690.00
675.00
675.00
725.00
700.00
670.00
640.00
665.00
660.00
657.50
660.00
710.00
680.00
685.00
665.00
687.50
690.00
687.50
690.00
660.00
680.00
675.00
670.00
680.00
685.00
640.00
660.00
660.00
640.00
590.00
595.00
590.00
565.00
570.00

3662.20
3938.74
3752.51
4053.94
3917.57
3991.38
3915.04
4236.96
3801.56
3747.22
3801.86
3678.16
3778.99
3878.55
3895.18
3806.74
3746.10
3715.04
3808.50
3783.67
3789.51
4053.23
4145.13
4282.59
4213.01
4118.98
4076.25
4121.49
4103.35
4191.30
4301.57
4508.15
4468.78
4430.76
4526.21
4550.95
4617.61
4494.38
4281.00
4427.04
4386.43
4310.52
4274.71
4269.86
4059.58
4158.19
4132.28
4077.49
3967.87
3943.65
3926.90

20-Jan-95
27-Jan-95
3-Feb-95
10-Feb-95
17-Feb-95
24-Feb-95
3-Mar-95
10-Mar-95
17-Mar-95
24-Mar-95
31-Mar-95
7-Apr-95
14-Apr-95
21-Apr-95
28-Apr-95
5-May-95
12-May-95
19-May-95
26-May-95
2-Jun-95
9-Jun-95
16-Jun-95
23-Jun-95
30-Jun-95
7-Jul-95
14-Jul-95
21-Jul-95
28-Jul-95
4-Aug-95
11-Aug-95
18-Aug-95
25-Aug-95
1-Sep-95
15-Sep-95
22-Sep-95
29-Sep-95
6-Oct-95
13-Oct-95
20-Oct-95
27-Oct-95
3-Nov-95
10-Nov-95
17-Nov-95
24-Nov-95
1-Dec-95
8-Dec-95
15-Dec-95
22-Dec-95
5-Jan-96
12-Jan-96
19-Jan-96

151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201

580.00
595.00
590.00
590.00
590.00
580.00
575.00
575.00
585.00
565.00
567.50
570.00
580.00
575.00
565.00
545.00
575.00
584.00
578.00
576.00
598.00
594.00
592.00
580.00
580.00
588.00
606.00
608.00
598.00
598.00
600.00
614.00
592.00
592.00
580.00
608.00
630.00
630.00
642.00
634.00
640.00
640.00
598.00
582.00
582.00
586.00
604.00
612.00
622.00
622.00
626.00

625.00
595.00
615.00
600.00
590.00
580.00
580.00
590.00
590.00
570.00
570.00
585.00
585.00
580.00
570.00
580.00
600.00
588.00
584.00
604.00
604.00
596.00
612.00
594.00
600.00
612.00
614.00
640.00
606.00
608.00
622.00
614.00
596.00
598.00
606.00
636.00
634.00
646.00
644.00
644.00
644.00
640.00
600.00
586.00
596.00
620.00
614.00
626.00
624.00
630.00
636.00

575.00
560.00
587.50
580.00
565.00
545.00
565.00
565.00
555.00
555.00
555.00
562.50
570.00
550.00
550.00
530.00
575.00
560.00
560.00
568.00
584.00
572.00
588.00
580.00
570.00
576.00
600.00
586.00
594.00
592.00
600.00
586.00
584.00
580.00
578.00
604.00
612.00
626.00
626.00
624.00
634.00
596.00
580.00
550.00
568.00
586.00
600.00
610.00
620.00
620.00
624.00

605.00
575.00
590.00
580.00
570.00
570.00
570.00
575.00
565.00
560.00
560.00
575.00
577.50
560.00
555.00
575.00
582.00
580.00
574.00
590.00
594.00
586.00
592.00
586.00
586.00
606.00
608.00
606.00
600.00
602.00
612.00
592.00
588.00
584.00
606.00
630.00
630.00
640.00
636.00
638.00
638.00
598.00
584.00
576.00
590.00
610.00
610.00
624.00
622.00
624.00
632.00

3765.62
3603.66
3600.53
3505.81
3638.13
3522.14
3383.89
3454.89
3528.36
3515.19
3367.65
3280.10
3260.96
3472.06
3464.76
3362.79
3133.28
3203.81
3154.18
3327.68
3235.55
3384.99
3337.71
3349.47
3315.81
3247.36
3191.04
3331.98
3443.19
3452.88
3395.17
3404.60
3446.18
3370.28
3356.09
3371.66
3444.40
3493.21
3598.37
3581.97
3514.42
3444.12
3469.40
3280.06
3103.03
3042.20
3037.99
3083.32
3049.40
3110.49
3048.86

26-Jan-96
2-Feb-96
9-Feb-96
16-Feb-96
23-Feb-96
1-Mar-96
8-Mar-96
15-Mar-96
22-Mar-96
29-Mar-96
5-Apr-96
12-Apr-96
19-Apr-96
26-Apr-96
3-May-96
10-May-96
17-May-96
24-May-96
31-May-96
7-Jun-96
14-Jun-96
21-Jun-96
28-Jun-96
5-Jul-96
12-Jul-96
19-Jul-96
26-Jul-96
2-Aug-96
9-Aug-96
23-Aug-96
30-Aug-96
6-Sep-96
13-Sep-96
20-Sep-96
27-Sep-96
4-Oct-96
11-Oct-96
18-Oct-96
25-Oct-96
1-Nov-96
8-Nov-96
15-Nov-96
22-Nov-96
29-Nov-96
6-Dec-96
13-Dec-96
20-Dec-96
27-Dec-96
3-Jan-97
10-Jan-97
17-Jan-97

202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252

634.00
630.00
680.00
700.00
700.00
720.00
710.00
665.00
700.00
710.00
705.00
720.00
720.00
785.00
795.00
775.00
770.00
765.00
762.25
780.00
832.50
880.00
885.25
827.50
880.00
852.00
865.00
858.00
860.00
830.00
842.50
836.25
826.00
834.00
824.25
814.00
799.00
790.00
810.00
820.00
784.00
788.00
803.00
775.00
800.00
780.00
785.00
815.00
808.00
816.75
884.00

636.00
674.00
700.00
725.00
725.00
725.00
720.00
705.00
715.00
710.00
725.00
725.00
800.00
815.00
810.00
805.00
790.00
785.00
785.00
839.75
875.00
934.75
887.50
899.00
898.00
881.00
893.00
866.75
890.25
868.00
861.75
841.50
829.00
834.00
830.00
820.00
814.50
807.00
831.00
820.00
786.00
816.50
820.00
804.00
800.00
819.00
819.00
823.50
817.00
897.00
910.25

618.00
628.00
630.00
685.00
700.00
705.00
660.00
655.00
700.00
705.00
705.00
710.00
715.00
735.00
775.00
750.00
770.00
755.75
738.00
780.00
832.50
868.75
820.00
800.00
855.00
840.00
829.00
825.00
855.00
810.00
835.00
800.00
806.00
820.25
811.00
780.00
750.00
782.00
807.00
783.75
771.50
786.00
790.00
765.00
732.25
740.25
778.75
804.00
804.25
800.00
860.00

634.00
672.00
680.00
705.00
715.00
710.00
675.00
695.00
710.00
710.00
720.00
715.00
780.00
790.00
780.00
780.00
770.00
774.75
781.50
832.75
870.00
885.75
821.50
870.25
860.25
869.00
855.50
861.00
860.75
846.50
841.75
835.25
818.00
826.50
820.75
785.75
798.75
805.25
814.00
790.50
781.25
803.00
800.00
799.75
790.00
775.25
818.50
807.75
809.50
892.50
874.00

3010.21
2918.21
2826.08
3172.83
3470.53
3499.06
3492.95
3417.81
3344.64
3343.27
3238.71
3366.61
3443.86
3487.51
3737.86
3765.11
3785.51
3694.39
3795.96
3709.25
3724.97
3866.21
4049.32
3924.95
3812.52
3707.01
3651.56
3763.09
3560.00
3511.63
3497.73
3431.40
3514.61
3508.07
3347.37
3346.78
3254.73
3101.27
3160.52
3130.21
3250.66
3148.57
3066.66
3139.02
2965.66
2890.50
2826.20
2881.15
3110.19
3085.20
3264.00

24-Jan-97
31-Jan-97
7-Feb-97
14-Feb-97
21-Feb-97
28-Feb-97
7-Mar-97
14-Mar-97
21-Mar-97
28-Mar-97
4-Apr-97
11-Apr-97
18-Apr-97
25-Apr-97
2-May-97
9-May-97
16-May-97
23-May-97
30-May-97
6-Jun-97
13-Jun-97
20-Jun-97
27-Jun-97
4-Jul-97
11-Jul-97
18-Jul-97
25-Jul-97
1-Aug-97
8-Aug-97
15-Aug-97
22-Aug-97
29-Aug-97
5-Sep-97
12-Sep-97
19-Sep-97
26-Sep-97
3-Oct-97
10-Oct-97
24-Oct-97
31-Oct-97
7-Nov-97
14-Nov-97
21-Nov-97
28-Nov-97
5-Dec-97
12-Dec-97
19-Dec-97
26-Dec-97

253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
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275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300

873.00
893.00
876.50
891.00
916.75
856.00
975.00
1005.00
1002.00
1020.00
900.00
1023.00
1046.00
1058.00
1088.00
1080.00
1123.75
1068.75
1050.00
1040.00
1239.00
1300.00
1310.00
1420.00
1400.00
1358.00
1330.00
1380.00
1485.00
1528.00
1400.00
1388.75
1345.00
1378.00
1440.00
1310.00
1346.00
1325.50
1436.75
1385.00
1286.00
1329.00
1300.00
1320.00
1374.00
1345.00
1224.00
1405.00

883.75
900.00
902.00
918.00
917.00
990.00
1090.00
1020.00
1020.00
1020.00
1017.00
1069.00
1055.00
1095.00
1110.00
1105.00
1125.00
1074.00
1115.00
1268.00
1320.00
1400.00
1400.00
1455.00
1417.75
1374.00
1400.00
1457.00
1590.00
1555.00
1449.00
1413.00
1420.00
1448.75
1443.00
1349.00
1358.00
1368.25
1455.00
1390.00
1340.00
1355.00
1340.00
1407.00
1400.00
1350.00
1403.00
1448.00

861.00
875.50
875.00
890.00
855.25
845.00
951.50
989.75
972.75
991.00
899.00
1015.00
1035.25
1055.00
1035.00
1063.00
1038.00
1045.00
1025.00
1040.00
1187.00
1280.00
1274.00
1363.00
1354.00
1314.25
1250.00
1363.00
1476.00
1450.00
1345.00
1340.00
1326.25
1373.00
1305.25
1273.00
1322.00
1320.00
1371.25
1300.00
1275.50
1278.00
1236.00
1287.00
1345.00
1205.00
1203.00
1375.00

882.00
887.00
888.50
904.75
856.25
941.75
1025.00
992.25
1008.00
998.00
1012.00
1050.50
1054.00
1093.50
1084.00
1100.00
1070.00
1046.25
1114.75
1235.50
1300.25
1321.25
1384.25
1371.75
1386.25
1324.00
1379.75
1444.75
1532.75
1462.75
1376.75
1350.50
1405.25
1413.75
1307.00
1346.00
1332.25
1351.50
1374.50
1357.00
1335.50
1292.25
1331.25
1391.00
1346.75
1228.25
1395.00
1389.25

3418.32
3422.35
3435.62
3382.47
3407.22
3521.99
3439.49
3651.91
3876.04
3745.31
3730.20
3663.53
3550.37
3633.73
3696.52
3825.57
3801.71
3769.34
3759.64
3706.37
3755.10
3836.44
4029.99
4083.04
4133.24
4323.82
4321.98
4124.81
4189.81
4347.32
4397.54
4320.97
4047.67
3876.08
4032.35
3995.94
3825.12
3925.24
3847.73
4057.37
3957.46
3934.33
3747.32
3569.77
3523.44
3560.29
3469.08
3329.27