Dow Jones Industrials stocks listed on the New York Stock Exchange (The other four are on the

Question:

Dow Jones Industrials stocks listed on the New York

Stock Exchange (The other four are on the NASDAQ.) for the period January 2011– December 2015.

3M (MMM)

American Express (AXP)

Boeing (BA)

Caterpillar (CAT)

Chevron (CVX)

Coca-Cola (KO)

Disney (DIS)

Du Pont (DD)

Exxon (XOM)

General Electric (GE)

Goldman Sachs (GS)

Home Depot (HD)

International Business Machines (IBM)

Johnson & Johnson (JNJ)

JP Morgan Chase (JPM)

McDonald’s (MCD)

Merck (MRK)

Nike (NKE)

Pfizer (PFE)

Proctor & Gamble (PG)

Travelers (TRV)

United Technologies (UTX)

United Health (UNH)

Verizon Communications (VZ)

Visa (V)

Wal-Mart Stores (WMT)

For the following exercises, calculate the beta coefficient and the coefficient of determination for the listed stock and interpret their values.

1. McDonald’s (MCD)

2. American Express (AXP)

3. General Electric (GE)

4. Home Depot (HD)

5. Nike (NKE)

6. Visa (V)

For the following exercises, determine the average beta coefficient for the stocks in the listed portfolio.

7. Boeing (BA), Caterpillar (CAT), and Exxon (XOM)

8. Travelers (TRV), Chevron (CVX), and McDonald’s (MCD)

9. Merck (MRK), Pfizer (PFE), and United Health

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Beta Coefficient
Beta coefficient is a measure of sensitivity of a company's stock price to movement in the broad market index. It is an indicator of a stock's systematic risk which is the undiversifiable risk inherent in the whole financial system. Beta coefficient...