Question
Go to Yahoo! Finance: http://finance.yahoo.com/ 2. Type in Search Finance box: General Motors and see that while you do the typing Yahoo provides you with
Go to Yahoo! Finance: http://finance.yahoo.com/
2. Type in Search Finance box: General Motors and see that while you do the typing Yahoo provides you with a list of suggested companies with similar names Please note that the same company may be listed in different stock exchanges and countries with the same or similar names. Please select from the list General Motors company listed on the NYSE with the ticker symbol of GM.
3. Once you have the information on GM, please make a note of GMs 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, beta coefficient, where is it traded, stock price, and the EPS. Date your table as the information you obtained is time-specific.
6. Explain each company's risk position using their beta coefficients with one line. Which one is the riskiest and which one is the least risky?
7. How is it possible that we can talk about the risk without standard deviation information for the companies?
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 the rest on GE. Compute the portfolio beta.
9. Assume that, one month later, you sold your GM stocks with a 10% gain and allocated the proceeds from the sale on GE and Expedia equally. What is the new portfolio beta?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started