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Questions 1. (5 points) Obtain the data: a. Find the name of the company which is assigned to you in the attached table b. Go

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Questions 1. (5 points) Obtain the data: a. Find the name of the company which is assigned to you in the attached table b. Go to finance.ooRle.com: c. Search the name of the company or its stock ticker, and open the company's information page by clicking on the ticker. Make sure that you have the correct company. For example, the ticker for Time Warner is TWX and it is traded on NYSE; Go to the "Historical prices" page. Select the last 30 prices data which are available on the first page, copy them and paste them in an empty Excel file; Delete the "Open", "High", "Low", and "Volume" columns. Sort the stock prices in d. e. f. Copy the "Date and "Close columns to the first table in the Excel file that is provided on eCourses (F17_FINA 3103 Hw4") 2. (5 points) Calculate the returns Calculate the daily stock returns in column "Return" using the formula: Return Price 1. Note that the return for the first day in your table cannot be calculated; Pricer-s 3. (10 points) Calculate the average return and stand-alone risk: a. In the same Excel sheet, locate the table with three columns named "Mean", Variance" and StDev Use the appropriate Excel function to calculate the average, sample variance and sample standard deviation of the returns. b. Page 1 4. (5 points) Calculate the required return on stock using the CAPM: a. In the same Excel sheet, locate the table with four columns named "R f, "Beta" "RP-M" and Rj", Assume that: R-Risk-free rate of return = 1.80% and RPs,-Market risk premium 5.5%; enter these numbers in your table; Go to the summary page of the company on Google Finance. Find the "Beta" and enter it in your table; Use the Capital Asset Pricing Model formula to calculate the required return for the company, R, in the table. b. c. d. Questions 1. (5 points) Obtain the data: a. Find the name of the company which is assigned to you in the attached table b. Go to finance.ooRle.com: c. Search the name of the company or its stock ticker, and open the company's information page by clicking on the ticker. Make sure that you have the correct company. For example, the ticker for Time Warner is TWX and it is traded on NYSE; Go to the "Historical prices" page. Select the last 30 prices data which are available on the first page, copy them and paste them in an empty Excel file; Delete the "Open", "High", "Low", and "Volume" columns. Sort the stock prices in d. e. f. Copy the "Date and "Close columns to the first table in the Excel file that is provided on eCourses (F17_FINA 3103 Hw4") 2. (5 points) Calculate the returns Calculate the daily stock returns in column "Return" using the formula: Return Price 1. Note that the return for the first day in your table cannot be calculated; Pricer-s 3. (10 points) Calculate the average return and stand-alone risk: a. In the same Excel sheet, locate the table with three columns named "Mean", Variance" and StDev Use the appropriate Excel function to calculate the average, sample variance and sample standard deviation of the returns. b. Page 1 4. (5 points) Calculate the required return on stock using the CAPM: a. In the same Excel sheet, locate the table with four columns named "R f, "Beta" "RP-M" and Rj", Assume that: R-Risk-free rate of return = 1.80% and RPs,-Market risk premium 5.5%; enter these numbers in your table; Go to the summary page of the company on Google Finance. Find the "Beta" and enter it in your table; Use the Capital Asset Pricing Model formula to calculate the required return for the company, R, in the table. b. c. d

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