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1.Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed,

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1.Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both.

A. Using the two stocks you selected from Homework #1, identify the Beta for each stock. What conclusion can you draw from the stocks' current and historical beta? If the stock market went up 10% today, what would be the impact on each of your stocks?

B. Using the 2014 financial statements from your stocks above and the equations from your textbook, prepare the Historical Average and Standard Deviation for each stock.

Stock A: WFC (Wells Fargo)

Stock B: SEIC (SEI Investments)

image text in transcribed 1. Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. A. Using the two stocks you selected from Homework #1, identify the Beta for each stock. In your own words, what conclusion can you draw from the stocks' current and historical beta? If the stock market went up 10% today, what would be the impact on each of your stocks? B. Using the 2014 financial statements from your stocks above and the equations from your textbook, prepare the Historical Average and Standard Deviation for each stock. Stock A: WFC (Wells Fargo) Stock B: SEIC (SEI Investments)

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