I\\ n BandTyps'AdJuerTrt x / SttayerUnu-etsityanotes x' m WeekAHnmewarkeFlA x -Weeuttnmewaih x 3 takescreenghnlanptrt x C!) m >

Bond Types 'Adjuster Trj X Strayer University Books X Week 4 Homework FIP X Week 4 Homework C Secure https://strayer.vitalsource.com/#/books/9781305561687/cfi/6/40!/4/570/2@0:45.0 Apps S best apps for busin C?] The Shopping Cart: C?] New Tab 5 Good Effects of Tim Mobile Uploads C?] X take screenshot on pc - New, used, and pre-c MAT 510 Week 5 Mic MAT 510 Midterm Suboptimization OCCL iiB O Decision-Making wit" 14 -10 -18 12 Did the process aver? 11 -12 10 Did the p mcess aver? Table Of Contents < CHAPTER 8 An Introduction to Po... Capital Market Theory: An Overview The Capital Asset Pricing Model Relaxing the Assumptions Additional Empirical Tests of the CAPM The Market Portfolio: Theory versus 2 3 4 5 20 -14 -20 15 10. Discuss the reason for the differences in the measured betas for Sophie Fashion Co. Does the suggested relationship appear reasonable? Why or why not? Draw the security market line for each of the following conditions: (1) RFR = 0_12 (2)Rz b. c. Rader Tire has the following results for the last six periods. Calculate and compare the betas using each index. Practice Search content Begin by searching. Period 2 3 4 5 6 Rader Tire 29 12 -12 17 20 -5 RATES OF RETURN Proxy Specific Index 12 10 _9 14 25 -10 True General Index 13 13 -8 18 28 If the current period retum for the market is 12 percent and for Rader Tire it is 11 percent: are superior results being obtained for either index beta? THOMSON REUTERS Sort v Use the Thomson OneBusiness School Edition Online Database to answer the following questions. 1. You want to evaluate the recent investment performance for two stocksWalgreens and Exxon Mobilrelative to the S&P 500 index. m Under the "Company Analysis" tab, look up the ticker symbols for Walgreens and Exxon Mobil. b. For each firm: as well as for the S&P SCIO Index: dounload dally price information for the past year using the menu options available underthe "Prices" tab for each company. c. For each firm: calculate the set of day retums that correspond to these daily price sertes_ 2. 3. d. Using daily retums for the past year: calculate the beta coefficient for Walgreens and ExxonMobil compared to the S&P 500 index. (Note: You can either build your om,vn spreadsheet model to perform these calculations or use Excel's built-in functions for "Slope:- or 'Regression. e. Based on your results in Part d, vvhich stock appears to be the riskiest? To evaluate how sensitive beta estimates are to the perlod over which retums are measured: you now want to repeat the analysis in the last problem using weekly data over the past year. m For each firm: as well as for the S&P SCIO Index: dounload weekly price Information for the past year using the menu options available m the Prices tab for each company. b. For each firm: calculate the set of weekly retums that correspond to these daily price semes. c. Using weekly returns for the past year: calculate the beta for Walgreens and Exxon Mobil compared to the S&P 500 index. d. How do your beta estimates for Walgreens and Exxon Mobil differ when using daily versus weekly data m the estimation process? Does your conclusion change about which stock is the riskiest? You would now like to evaluate the impact that the chore of index used for the market portfolio proxy has on the beta estimation process. m Collect monthly price data for Walgreens and ExxonMobil for the past five years and use this Information to compute monthly returns over that period. b. Collect monthly price data for the S&P 500 Index and MSCI World index (based m U.S_ dollars) for the past five years and compute monthly returns for both series. (Note: You can access the information fora wide varieh' All Books 240 Week 4 Homework.xlsx Type here to search Current Book Investment Analysis and Portfolio Management, 1 Oe Week 4 Homewo....docx Show all 11:25 PM 10/29/2017