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Obtain monthly for Magna International Inc., the Bank of Montreal, and the S&P/TSX Composite Index for January 1, 2017 to December 31, 2021. (Note: monthly
| Obtain monthly for Magna International Inc., the Bank of Montreal, and the S&P/TSX Composite Index for January 1, 2017 to December 31, 2021. | ||||
| (Note: monthly historical prices, adjusted for dividends, are available from http://ca.finance.yahoo.com.) | ||||
| To obtain the data, go to the website and search using the following ticker symbols: | ||||
| MG.TO | ||||
| BMO.TO | ||||
| ^GSPTSE | ||||
| a. Which firm do you expect to have a larger beta? Explain your reasoning. | ||||
| b. Calculate the beta for each company. | ||||
| c. Create a portfolio consisting of 50 percent in Magna International and 50 percent in Bank of Montreal. | ||||
| i. Calculate the monthly returns for the portfolio and calculate the beta of the portfolio using those monthly returns. | ||||
| ii. Using equation 11.8, calculate the beta of the portfolio. | ||||
| iii. Compare the two betas. | ||||
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Contemporary Topics In Finance
Authors: Iris Claus, Leo Krippner
1st Edition
1119565162, 978-1119565161
