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Available ou 28 acizam-Nov 10 at 11:59pm 14 days Introduction This assignment covers material in Chapter 7, Risk and Return. You will need to know (1) how to find the historical prices of stocks, (2) how to calculate the monthly percent return, (3) the difference between total risk and systematic (market) risk, and (4) how to calculate the portfolio expected return and portfolio beta Instructions Select three companies with publicly traded stock (do not pick any of the companies in the sample table below). For each company, find the closing, monthly stock price for the company over the last four years. Finance Yahoo is an ideal place to find the data. Here is a short video to help you with this process: Historical Prices Watch later Share . Once the price data is in a spreadsheet (please use a separate tab for each company to help organize), calculate the percent return for each stock for each month, and then the expected value (or average) return for the stock using the AVERAGE function in Excel. Calculate the standard deviation of the returns using the STDEV function in Excel as well. Find the beta coefficient for each stock on a financial information web site. On Finance Yahoo, you will find beta under the Key Statistics for the company. Assume you have $300,000 to invest in the stocks chosen. Allocate a portion of the $300,000 to the individual stocks selected; basically pretend you are buying the stocks. Calculate the weight($ invested/$300,000) each stock represents in your "portfolio" . Using the expected return and beta coefficients for each stock, and the percentage of the $300,000 invested in each, calculate the "portfolio" expected return and the "portfolio" beta. Use Equation 7-4 for both these values, keeping the same weights, but changing the variables. The submitted file must include a "table" of the following data: the companies selected amount of money invested in each stock and the associated weight given to each stock in the portfolio the average return of each stock, the standard deviation of the returns for each stock, the beta coefficient for each stock, and the portfolio expected return and beta. This is an example of the "table" (below) that must be submitted on a "separate" tab in your spreadsheet. Your companies, values, and %'s will be different, but the table layout must be the same. Explain which stocks in the portfolio have the most total risk and the most market risk and why. note: your numbers will look very different, but your table should be similar elir structure.com for both these values, keeping the same weights, but changing the variables. The submitted file must include a "table" of the following data: the companies selected amount of money invested in each stock and the associated weight given to each stock in the portfolio the average return of each stock, the standard deviation of the returns for each stock, the beta coefficient for each stock, and . the portfolio expected return and beta. This is an example of the "table" (below) that must be submitted on a "separate" tab in your spreadsheet. Your companies, values, and %'s will be different, but the table layout must be the same. Explain which stocks in the portfolio have the most total risk and the most market risk and why. note your numbers will look very different, but your table should be similar. Company Weyerhauser JC Penny Krogers Ticker Symbol WY Std Dev Average of Monthly Monthly Return Return 1.27% 6.10% -1.68% 14.86% 2.62% 5.78% Beta 1.08 1.64 0.97 Amount Invested $100,000 $80,000 $120,000 $300,000 JCP Average Average Weighted Weighted Return Beta 0.42% 0.36 -0.45% 0.44 1.05% 0.39 1.02% 1.19 Weight 0.33 0.27 0.40 KR Available ou 28 acizam-Nov 10 at 11:59pm 14 days Introduction This assignment covers material in Chapter 7, Risk and Return. You will need to know (1) how to find the historical prices of stocks, (2) how to calculate the monthly percent return, (3) the difference between total risk and systematic (market) risk, and (4) how to calculate the portfolio expected return and portfolio beta Instructions Select three companies with publicly traded stock (do not pick any of the companies in the sample table below). For each company, find the closing, monthly stock price for the company over the last four years. Finance Yahoo is an ideal place to find the data. Here is a short video to help you with this process: Historical Prices Watch later Share . Once the price data is in a spreadsheet (please use a separate tab for each company to help organize), calculate the percent return for each stock for each month, and then the expected value (or average) return for the stock using the AVERAGE function in Excel. Calculate the standard deviation of the returns using the STDEV function in Excel as well. Find the beta coefficient for each stock on a financial information web site. On Finance Yahoo, you will find beta under the Key Statistics for the company. Assume you have $300,000 to invest in the stocks chosen. Allocate a portion of the $300,000 to the individual stocks selected; basically pretend you are buying the stocks. Calculate the weight($ invested/$300,000) each stock represents in your "portfolio" . Using the expected return and beta coefficients for each stock, and the percentage of the $300,000 invested in each, calculate the "portfolio" expected return and the "portfolio" beta. Use Equation 7-4 for both these values, keeping the same weights, but changing the variables. The submitted file must include a "table" of the following data: the companies selected amount of money invested in each stock and the associated weight given to each stock in the portfolio the average return of each stock, the standard deviation of the returns for each stock, the beta coefficient for each stock, and the portfolio expected return and beta. This is an example of the "table" (below) that must be submitted on a "separate" tab in your spreadsheet. Your companies, values, and %'s will be different, but the table layout must be the same. Explain which stocks in the portfolio have the most total risk and the most market risk and why. note: your numbers will look very different, but your table should be similar elir structure.com for both these values, keeping the same weights, but changing the variables. The submitted file must include a "table" of the following data: the companies selected amount of money invested in each stock and the associated weight given to each stock in the portfolio the average return of each stock, the standard deviation of the returns for each stock, the beta coefficient for each stock, and . the portfolio expected return and beta. This is an example of the "table" (below) that must be submitted on a "separate" tab in your spreadsheet. Your companies, values, and %'s will be different, but the table layout must be the same. Explain which stocks in the portfolio have the most total risk and the most market risk and why. note your numbers will look very different, but your table should be similar. Company Weyerhauser JC Penny Krogers Ticker Symbol WY Std Dev Average of Monthly Monthly Return Return 1.27% 6.10% -1.68% 14.86% 2.62% 5.78% Beta 1.08 1.64 0.97 Amount Invested $100,000 $80,000 $120,000 $300,000 JCP Average Average Weighted Weighted Return Beta 0.42% 0.36 -0.45% 0.44 1.05% 0.39 1.02% 1.19 Weight 0.33 0.27 0.40 KR
