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Choose two publicly traded companies from two different industries that have not been chosen by other students. One stock should be a value stock (low

Choose two publicly traded companies from two different industries that have not been chosen by other students. One stock should be a value stock (low beta, low p/e, low B/M, Low EPS growth rate, Low P/S) and the other should be a growth stock (high beta, high p/e, high M/B, high EPS growth rate, high P/S). So high beta means a beta that is higher than the beta of the market, or 1. So high P/E ratio means a P/E ratio that is higher than the P/E of the market. Go to yahoo.com or NASDAQ.com and download their monthly prices for the past five years.

  1. Estimate the average monthly return for each stock.
  2. Estimate the standard deviation of monthly returns of each stock
  3. Which stock has the highest and the lowest total risk? Highest and lowest Systematic risk?
  4. Compare these two stocks (Risk-return trade-of).

Provide your answers in the window and attach your Excel file where your estimations can be seen.

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