Question
1.Go to Yahoo! Finance:http://finance.yahoo.com/ 2.Type in Search Finance box: General Motors... and see that while you do the typing Yahooprovides you with a list of
1.Go to Yahoo! Finance:http://finance.yahoo.com/
2.Type in Search Finance box: General Motors... and see that while you do the typing Yahooprovides you with a list of suggested companies with similar names... Please note that thesame company may be listed in different stock exchanges and countries with the same or similarnames. Please select from the list General Motors Company listed in NYSE with the tickersymbol of GM.
3.Once you have the information on GM, please make a note of GM's beta coefficient.
4.Do the same for Boeing, Amazon, Exxon-Mobil Corporation, Expedia, and GE.
5.For all 6 companies, you looked at above, make a table showing the name, ticker symbol, betacoefficient, where is it traded, stock price, and the EPS. Date your table as the information youobtained is time-specific.
6.Explain each company's risk position using their beta coefficients with one line. Which one is theriskiest and which one is the least risky?
7.How is it possible that we can talk about the risk without standard deviation information for thecompanies?
8.Make a portfolio assuming you have $80,000 and decided to invest $20,000 on General Motors,$30,000 on Amazon, $10,000 on Boeing, $7,500 on Exxon Mobil, $2,500 on Expedia, and therest on GE. Compute the portfolio beta.
9.Assume that, one month later, you sold your GM stocks with a 10% gain. Assume also that you allocated theproceeds from the sale on GE and Expedia equally. What is the new portfolio beta?
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