Question
1. Suppose you have $1000 to invest and are using two stocks (A and B) to construct a market-neutral portfolio. Based on your analysis, the
1. Suppose you have $1000 to invest and are using two stocks (A and B) to construct a market-neutral portfolio. Based on your analysis, the weight for A = 37.4, calculate the weight for B. What do those numbers (the two weights) mean?
2. If based on the CAPM regression on Facebook during 2017 - 2018, we get the following regression equation: y = 0.005 + 1.26x What is Facebook's alpha? What is its historical beta? What is Facebook's future beta? What is your judgement about Facebook based on the performance in 2017-2018? Is it a good investment according to the criteria we mentioned in the class?
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Volume Price Analysis The Ultimate Beginner S Guide On How To Use Volume Price Action Strategies And Trading Technical Analysis To Master The Financial Markets Without Prior Experience
Authors: George Milton
1st Edition
979-8847822169
