Question
Go to Yahoo! Finance: http://finance.yahoo.com/ Type in Search Finance box: General Motors and see that while you do the typing Yahoo provides you with a
Go to Yahoo! Finance: http://finance.yahoo.com/
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 the 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 in NYSE with the ticker symbol of GM.
Once you have the information on GM, please make a note of the GMs beta coefficient.
Do the same for McDonalds, Apple Incorporation, Exxon Mobil Corporation, Expedia Incorporation and Travelzoo Inc.
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.
Explain each company's risk position using their beta coefficients with one line. Which one is the most risky and which one is the least risky?
How is it possible that we can talk about the risk without standard deviation information for the companies?
Make a portfolio assuming you have $80,000 and decided to invest $20,000 on General Motors, $30,000 on Apple, $10,000 on McDonalds, $7,500 on Exxon Mobil, $2,500 on Expedia, and the rest on Travelzoo. Compute the portfolio beta.
Assume that, one month later, you sold you GM stocks and earned 10% more from the sale compared to what you paid for the stocks. Assume also that you decided to allocate the proceeds on Travelzoo and Expedia equally. What is the new portfolio beta?
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