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1. Find at least one year Holding Period Returns (HPR) for two securities. 2. Compute beta ( ) for these two securities by graphing HPR
1. Find at least one year Holding Period Returns (HPR) for two securities. 2. Compute beta ( ) for these two securities by graphing HPR for the market on the X axis and HPR for the security on the Y axis. A compute HPR for an index (DJIA, NASDAQ, S&P 500, or NYSE) on which a security is listed on. 3. Show the returns on the two securities using CAPM in the following format, Where, give: = .% = % = + ( ) 4. Compute correlation between two securities. It needs to be correlated in the range of 0.4 to -1.
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