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finance, beta, risk and return, systematic risk you can use any 2 companies from current S&P 500. please help and please include formulas used in
finance, beta, risk and return, systematic risk
you can use any 2 companies from current S&P 500. please help and please include formulas used in excel. I will thumbs up!!! Thank you!
- Choose 2 stocks - look up betas for your stocks using Excel Data Types, Yahoo! Finance, or Koyfin.com (published betas are usually 5-year betas) - Download a year of adjusted closing prices for your stocks and the S\&P500 from Yahoo* - calculate daily HPR for each - regress [Data, Data Analysis, Regression] each stock HPR on the benchmark HPR ( Y is the stock and X is the benchmark) - the slope is the one-year beta o test whether the beta is significantly greater/less than one - Calculate downside beta for each stock - select your data - use Data, Sort to sort by S\&P500 returns, lowest to highest - your data set is all of the HPRs where the S\&P500 benchmark is negative - regress each stock on the benchmark for the restricted data set - the slope is your downside beta o test whether the downside beta is significantly greater/less than one - Make a table to add to your Word summary: For your stock and the benchmark, compare average daily HPRs, standard deviation, skewness, kurtosis, calculated 1-year betas, calculated downside betas, and published 5-year betas - Discussion: What do the betas mean? What is the difference between regular betas and downside betas? Are your betas statistically significant? How do betas help you with investment decisions? What did you learn about your stocks? Which asset is best according to these measures? Upload your Excel worksheet as well as a Word doc with the table and discussion Holding Period Return =Pt1PtPt1+Dt To add the Data Analysis tab: File, Options, Add-ins, Excel Add-ins Go, Analysis ToolPak *To get one year of data from Yahoo: Ticker, Historical Data, DownloadStep by Step Solution
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