Q4.4 Choose three NYSE-listed stocks and maintain a record of their dividend payments, if any, and closing

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Q4.4 Choose three NYSE-listed stocks and maintain a record of their dividend payments, if any, and closing prices each week over the next six weeks.

a. At the end of the six-week period, calculate the 1-week holding period returns (HPRS) for each stock for each of the six weeks.

b. For each stock, average the six weekly HPRS calculated in part a and compare them.

c. Use the averages you computed in part b and compute the standard deviation of the six HPRs for each stock. Discuss the stocks' relative risk and return behavior. Did the stocks with the highest risk earn the greatest return?

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Fundamentals Of Investing

ISBN: 9780136117049

11th Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott B. Smart, Scott J. Smart

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