Question
Using thewww.yahoofinance.comsite or other site with stock information, choose six firms: two each from three different industries. Gather the following information for each stock: 1)
Using thewww.yahoofinance.comsite or other site with stock information, choose six firms: two each from three different industries. Gather the following information for each stock: 1) beta for each of these firms; and 2) the total return for the previous year for each firm. Also find the return on the S&P Index for the same time period.
Given the information you have obtained, discuss the differences you observe. How do the betas and returns compare? What are the similarities and differences you observe within industries? What are the similarities and differences you observe between industries? How would you explain your results in term of the following concepts:
- Total Risk
- Systematic Risk
- Idiosyncratic Risk
I am wanting to use the companies Whole Foods and Kroger, Nike and Adidas, and Apple and HP. I can find all the betas for the company. But am having trouble finding the total return for each for the previous year. I also need help explaining results in the terms of total risk , systematic risk, and idiosyncratic risk. Please help me.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started