number 3

Ull stocks, con S. R2 of the regression individual stocks. parket cap of each of weighted portfolio. She uns on the Sky e R of the individu and market cap for dividual regressions of lue-weighted ponto io's returns on the S&P b. For an equally welgincu the regression on the S&P 500. Show that the R2 greater than the weighted average R of the individ c. The template for this question shows the market stocks. Use these data to construct a value-weighted that the R2 of the regression of this portfoli 500 is greater than the value-weighted average R2 stocks. 2. The template for this exercise gives price information and 10 companies. Compute the stock returns and the individual returns on the S&P 500. Use this data to construct a value-weight lio. Show that the RP of the regression of this portfolio's returns on 500 is greater than the value-weighted average R of the individuals 3. In the template for this exercises, you will find the data for 10 packaoed stocks. Run the template data, and find the portfolio statistics. Notice thee while the portfolio R is higher than the weighted average R, the improvement is not as dramatic as that of the example in the text. What do you conclude? 4. Make up your own portfolio! Repeat exercise 2, but substitute a 10-asset portfolio of your own creation. Here are some suggestions: Portfolio of "green" (environmental-friendly) stocks. Portfolio of low-beta stocks. Portfolio of transportation stocks. Etc.... Ull stocks, con S. R2 of the regression individual stocks. parket cap of each of weighted portfolio. She uns on the Sky e R of the individu and market cap for dividual regressions of lue-weighted ponto io's returns on the S&P b. For an equally welgincu the regression on the S&P 500. Show that the R2 greater than the weighted average R of the individ c. The template for this question shows the market stocks. Use these data to construct a value-weighted that the R2 of the regression of this portfoli 500 is greater than the value-weighted average R2 stocks. 2. The template for this exercise gives price information and 10 companies. Compute the stock returns and the individual returns on the S&P 500. Use this data to construct a value-weight lio. Show that the RP of the regression of this portfolio's returns on 500 is greater than the value-weighted average R of the individuals 3. In the template for this exercises, you will find the data for 10 packaoed stocks. Run the template data, and find the portfolio statistics. Notice thee while the portfolio R is higher than the weighted average R, the improvement is not as dramatic as that of the example in the text. What do you conclude? 4. Make up your own portfolio! Repeat exercise 2, but substitute a 10-asset portfolio of your own creation. Here are some suggestions: Portfolio of "green" (environmental-friendly) stocks. Portfolio of low-beta stocks. Portfolio of transportation stocks. Etc