Please see attachment and following the intructions

The objectives of this exercise: 1. To access and download stock and index price data from yahoo.com. 2. To discern the difference between a real-time closing price and an adjusted closing price. 3. To discover how yahoo.com calculates beta for an individual stock. 4. To replicate the yahoo.com calculation for twenty firms in the S&P 500 index, tabulate the results and report your findings. Learning Outcomes: Students should be able to: 1. Identify individual stocks in the S&P 500 index and discuss the composition of the S&P 500 index. 2. Collect financial data including closing stock prices and adjusted closing stock prices. 3. Estimate beta from historical data. 4. Tabulate regression results and discuss empirical findings. Guidelines: 1. You will be assigned twenty (20) stocks from the current S&P 500 index. You must use these 20 stocks (or, more precisely, the ticker symbols) to download data from yahoo.com. Go to yahoo.com, then Finance, then type in your ticker symbol. Next choose Historical Prices from the tabs on the left. Tag \"Monthly\" then choose the appropriate dates (to be determined below). Click Get Prices, scroll to the bottom of the page and download to spreadsheet (it is actually saved as a '.csv' file, but it will open okay in Excel). The last month of return data should be August 2017. Be sure to use end-of-month data! Yahoo might print a beginning of month date in the monthly output, but it should be end of month. To check this, look at the daily data and verify that the last day of the month is used in the monthly spreadsheet (it should be if you wait until after the sample period to collect your data). 2. You must determine how exactly yahoo.com calculates historical beta, then replicate their calculations. This requires the use of regression software (or functions in Excel, if you know how to do that). Note, you must calculate returns first. Is the data sorted correctly - in time order? If not, you must sort your stock prices and market prices so that the oldest prices are first, then calculate returns. Answer the following questions: a. How, exactly, does yahoo.com calculate their beta? How many months of return data do they use? How many months of price data do you need? How do you know that you and Yahoo used the same data period? b. Should you use closing price or adjusted price when calculating returns? Why? c. What is the market proxy? What ticker did you use for your market proxy? 3. After calculating returns for your twenty stocks and the market, you must calculate beta for each of your twenty stocks. Create a Table showing the following: Ticker, Company Name, yahoo beta, calculated beta, intercept and r-square from your regressions. 4. Do your regression results match yahoo.com results? Why or why not? Output: You must submit a brief write-up of your results. Your paper should be detailed enough so that someone else could pick up your paper and replicate your results. So, you will need a brief introduction describing your data sources, how you manipulated the data, how you calculated returns, how you calculated beta, a Table, and a brief summary and discussion of your findings. In total, you must submit: 1. Your write-up as a Word file including the Table described above in Guideline #3 and your answers to the various questions. 2. An Excel spreadsheet (one sheet), properly formatted, containing the ticker symbol, closing price, adjusted price and dates (dates should be the same for each ticker) for each of your twenty stocks and your market proxy. 3. Another Excel spreadsheet, properly formatted, detailing how, exactly, you calculated the results in your Table (i.e., replicate the detailed findings for your stocks). The two Excel worksheets should be in one file with two different labeled worksheet tabs. Alternatively, you may use 20 Excel sheets named with the ticker symbol if you wish to combine the date, ticker symbol, closing price, adjusted closing price, and calculations and/or regressions separately for each of your 20 companies. List of Stocks in the S&P 500 Index on August 31, 2017: Ticker No. Ticker Symbol Company Waste Management Inc 481 WM Waters Corp 482 WAT Wells Fargo & Co 483 WFC Welltower, Inc. 484 HCN Western Digital Corp 485 WDC Western Union Co 486 WU Weyerhaeuser Co 487 WY Whirlpool Corp 488 WHR The Williams Companies Inc 489 WMB Willis Towers Watson 490 WLTW Wisconsin Energy Corp 491 WEC Wyndham Worldwide Corp 492 WYN Wynn Resorts Ltd 493 WYNN Xcel Energy Inc 494 XEL Xerox Corp 495 XRX Xilinx Inc 496 XLNX XL Capital 497 XL Xylem Inc 498 XYL Yum! Brands Inc 499 YUM Zimmer Biomet Holdings 500 ZBH Introduction In this assignment we have used Yahoo finance as data base, Yahoo finance is one of the leading financial databases which contain ns financial data of all public companies which exist in this world. It also contains data of al bonds, mutual fund and hedge for the knowledge of investors. In our assignment our task is to theoretically calculate beta of the stock and then compare this beta with the beta given on the Yahoo fianc portal and identify the differences in both the beta. Beta is measure of the systematic risk associated with company, systematic risk is the risk associated with the specific company. It can be diversified by investment in stocks with opposite correlation. Higher is the beta of the stock higher will the expected return associated with the stock because investor will bear higher risk. Methodology to calculate Beta Beta is calculated by the formula Beta of the stock = Covariance (market and stock) / Variance (market) Another method to calculate beta is regress the return of the socks against the market returns, the coefficient of the market returns gives the beta of the stock. Results Tickr AGI AER AE RHHBY PETX ODC NAO KAR HUSA HIVE FMS DOX CXW AZUR AXS AXL Company Name Alamos Gold Inc. AerCap Holdings N.V. Adams Resources & Energy, Inc. Roche Holding AG Aratana Therapeutics, Inc. Oil Dri Corporation of America Nordic American Offshore Ltd. KAR Auction Services, Inc. Houston American Energy Corp. Aerohive Networks, Inc. Fresenius Medical Care AG & Co. KGAA Amdocs Limited CoreCivic, Inc. Azure Midstream Partners, LP AXIS Capital Holdings Limited American Axle & Manufacturing Holdings, Inc. Yahoo Calculated Beta Beta 0.07 0.326524 1.81 0.161879 1.31 0.544736 0.51 0.073804 3.06 0.621058 1.14 0.355702 -0.38 -0.1982 1.02 0.223264 0.23 2.181612 1.77 1.452637 0.88 0.288117 0.61 0.348506 1.2 -0.01778 NA NA 0.57 0.09434 1.44 0.733492 Intercept -0.0006 0.030611 0.009063 0.009704 0.025328 0.017089 -0.05386 0.020049 0.024673 0.008143 0.006265 0.01401 0.014293 NA 0.014116 0.009466 R-square -0.01343 0.016064 -0.00126 -0.01493 0.015313 -0.00534 -0.02707 -0.00368 0.047654 0.092654 0.025589 0.087037 -0.01752 NA -0.01264 0.03528 AWX AVID ASNA ASGN Avalon Holdings Corporation Avid Technology, Inc. Ascena Retail Group, Inc. On Assignment, Inc. 0.37 1.54 1.64 1.71 -0.40936 0.001612 -0.00663 0.369351 0.00143 -0.01171 0.655023 -0.02487 0.001587 0.427899 0.024592 0.002897 We can observe that few of these stocks have beta greater than 1 these stocks more risky than the market and have potential to provide higher returns, similarly stock with beta less than 1 are less risky and have potential to provide stable returns. References https://in.finance.yahoo.com/quote/ASGN?p=ASGN Introduction In this assignment we have used Yahoo finance as data base, Yahoo finance is one of the leading financial databases which contain ns financial data of all public companies which exist in this world. It also contains data of al bonds, mutual fund and hedge for the knowledge of investors. In our assignment our task is to theoretically calculate beta of the stock and then compare this beta with the beta given on the Yahoo fianc portal and identify the differences in both the beta. Beta is measure of the systematic risk associated with company, systematic risk is the risk associated with the specific company. It can be diversified by investment in stocks with opposite correlation. Higher is the beta of the stock higher will the expected return associated with the stock because investor will bear higher risk. Methodology to calculate Beta Beta is calculated by the formula Beta of the stock = Covariance (market and stock) / Variance (market) Another method to calculate beta is regress the return of the socks against the market returns, the coefficient of the market returns gives the beta of the stock. Results Tickr AGI AER AE RHHBY PETX ODC NAO KAR HUSA HIVE FMS DOX CXW AZUR AXS AXL Company Name Alamos Gold Inc. AerCap Holdings N.V. Adams Resources & Energy, Inc. Roche Holding AG Aratana Therapeutics, Inc. Oil Dri Corporation of America Nordic American Offshore Ltd. KAR Auction Services, Inc. Houston American Energy Corp. Aerohive Networks, Inc. Fresenius Medical Care AG & Co. KGAA Amdocs Limited CoreCivic, Inc. Azure Midstream Partners, LP AXIS Capital Holdings Limited American Axle & Manufacturing Holdings, Inc. Yahoo Calculated Beta Beta 0.07 0.326524 1.81 0.161879 1.31 0.544736 0.51 0.073804 3.06 0.621058 1.14 0.355702 -0.38 -0.1982 1.02 0.223264 0.23 2.181612 1.77 1.452637 0.88 0.288117 0.61 0.348506 1.2 -0.01778 NA NA 0.57 0.09434 1.44 0.733492 Intercept -0.0006 0.030611 0.009063 0.009704 0.025328 0.017089 -0.05386 0.020049 0.024673 0.008143 0.006265 0.01401 0.014293 NA 0.014116 0.009466 R-square -0.01343 0.016064 -0.00126 -0.01493 0.015313 -0.00534 -0.02707 -0.00368 0.047654 0.092654 0.025589 0.087037 -0.01752 NA -0.01264 0.03528 AWX AVID ASNA ASGN Avalon Holdings Corporation Avid Technology, Inc. Ascena Retail Group, Inc. On Assignment, Inc. 0.37 1.54 1.64 1.71 -0.40936 0.001612 -0.00663 0.369351 0.00143 -0.01171 0.655023 -0.02487 0.001587 0.427899 0.024592 0.002897 We can observe that few of these stocks have beta greater than 1 these stocks more risky than the market and have potential to provide higher returns, similarly stock with beta less than 1 are less risky and have potential to provide stable returns. References https://in.finance.yahoo.com/quote/ASGN?p=ASGN