Common action of a corporation that is listed on the nyse

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1. Choose a common action of a corporation that is listed on the NYSE and on the basis of prices during the last 60 months to determine their rates of returns during those months and total rate of return; do the same for the same period with the market index represented by the S & P 500. 

***Will like to use AT&T INC ( T )

2. Calculate the beta of the chosen common action, as well as the correlation coefficient of this action to the market. After these results it can derive the characteristic line of action with relation to the market and the respective regression equation. Also derive the security market lines, SML. Draw the corresponding graph. What is your own opinion on the chosen action: this overvalued, undervalued or fairly valued it and recommends buy, sell or hold? Explain. 

Reference no: EM13153972

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