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Assume that you recently graduated with an MBA degree and have just landed a job as a financial planner with Henrys Investment Inc. Your first

Assume that you recently graduated with an MBA degree and have just landed a job as a financial planner with Henrys Investment Inc. Your first assignment is to create a portfolio for a client by selecting two stocks on the market.

1. You need to complete the below table by selecting ANY two stocks (except for Microsoft) on Nasdaq and collect the data on Dec 31 each year (or the last trading day in that year):

Company 1s Name

Company 2s Name

Nasdaq Composite

Includes Dividends

Year

Stock Price

Dividend

(paid in the last quarter as of the year)

Stock Price

Dividend

(paid in the last quarter as of the year)

2019

2018

2017

2016

2015

2014

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1. You need to complete the below table by selecting ANY two stocks (except for Microsoft) on Nasdaq and collect the data on Dec 31 each year for the last trading day in that year), Company I's Name Dividend Stock Price (paid in the last quarter as of the year) Company's Name Dividend Stock Price (paid in the last quarter as of the year) Nasdaq Composite Indudes Dividends Year 2019 2018 2017 2016 2015 2014 2. Use the data you have collected to calculate annual returns for Company 1. Company 2, and the Market Index, and then calculate average returns over the five year period. Give comments on your calculation results. Which stock has a higher return? 3. Calculate the standard deviation of the returns for Company 1. Company 2, and the Market Index. Do you think the standard deviation can reflect the stocks' risks? And why? 4. Construct a scatter diagram graph that shows Company 1's and Company 2's returns on the vertical axis and the Market Index's returns on the horizontal axis. What's the relationship between the two stocks from your observation? 5. Estimate or use data to find Company I's and Company 2's betas, as the slopes of regression lines with stock returns on the vertical axis (y-axis) and market return on the horizontal axis (x- axis). Are these betas consistent with your graph? Do you think beta can reflect the stocks risks? And why

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