Question
In Bloomberg, look up the betas for 5 stocks of your choice. You can use the command: BETA to find betas in Bloomberg. You should
In Bloomberg, look up the betas for 5 stocks of your choice. You can use the command: BETA to find betas in Bloomberg. You should use weekly returns over a 2- year period, with the S&P500 as your market proxy.
Plug the stock’s betas into a spreadsheet.
Using a 10-year Treasury rate of 3.496% for your Risk-Free Rate, and an expected market return of 6.000%, what do you expect your stock will return over the upcoming year?
Do these required returns on your stocks make sense given the risk associated with the stocks?
Do you think the stocks are properly valued or over/under valued?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
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