User Account

All Pages

Compute the beta value for each stock

Assignment Help Operation Management
Reference no: EM132288595

Discussion :

You will need to collect the stock price data for any 2 companies of your choice and the S&P 400 index. Choose companies that are in different industries.

Collect the end-of-month prices for the last 21 months of your chosen stocks and the S&P 400 and set them on the spreadsheet.

Taking this raw data, compute the monthly returns for all (there should be 20 returns). Make sure that I am able to see the cell formulas for each computation.

Next, compute the mean rate of return and the standard deviation of returns for both your stocks and the stock market.

Compute the beta value for each stock and plot the characteristic lines of the 2 companies on 2 graphs.

Compute the correlation coefficient for the 2 stocks. Plot the returns of your stocks against each other on a graph within the spreadsheet.

Next, assume that you construct a portfolio where you put equal money in each of your 2 stocks.

Compute the 20 monthly rates of return for the portfolio and the standard deviation of returns of the portfolio and its beta value.

Finally, within the spreadsheet discuss in DETAIL your findings regarding risk/return of your portfolio as compared to the risk/return characteristics of the 2 individual stocks. These comments must be detailed with a complete analysis.

Reference no: EM132288595

Questions Cloud

Who are the members of a healthcare team : Who are the members of a healthcare team that you believe are most needed to implement a program? Can you explain why?
Average cost minimizing level of output : Marginal cost equals average cost at the average cost minimizing level of output.
How does role vary between design and implementation : What is the role of the nurse in healthcare program implementation? How does this role vary between design and implementation of healthcare programs?
Two bidders for the unique china teacup it sells : Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna can only set one price, what price should she set
Compute the beta value for each stock : Collect the end-of-month prices for the last 21 months of your chosen stocks and the S&P 400 and set them on the spreadsheet.
Discuss three examples of stock trades performed : Discuss three examples of stock trades performed in our StockTrak simulation game.
Describe the pharmacodynamic processes : Examine Case Study: A Puerto Rican Woman With Comorbid Addiction. You will be asked to make three decisions concerning the medication to prescribe.
Find the equilibrium market price and quantity : In a perfectly competitive market, the market demand curve is given by Qd = 1000-10P d , and the market supply curve is given by Qs = 30P s .
Analysis of relevant legislation : Complex Complaints Briefing Report - Reflect customer needs you have identified and show how these needs will be satisfied through the service provided

Reviews

Write a Review

Operation Management Questions & Answers

  Difference between gand sponsor and title sponsor

What is the difference between gand sponsor and Title sponsor ?

  My current thoughts about jobs and careers

My current thoughts about jobs and careers: What can you see yourself doing or not doing? What aspects of a job or profession are interesting or important to you (e.g. location, working alone or part of a group, working with people/numbers/things, nu..

  Restaurant managers general-task and internal environments

Describe a Manhattan, Kansas, Subway Restaurant manager’s general, task, and internal environments. Include at least two elements of each, and describe them. I feel like I need to insert a reminder here, because these definitions and descriptions are..

  Explain how external environment-organizational size

Explain how the external environment, organizational size, technology, and strategy are relevant in the design of an organizational structure where you have worked.

  What management should do to obtain highest expected value

A manufacturing plant has reached full capacity. The company must build a second plant - either small or large at a nearby location. The demand is likely to be high or low. Draw a decision tree and solve to determine what management should do to obta..

  What types of communication need to take place

What are the first things you should do regarding the media, the coaches, and the other athletic department administrators?

  Major functions of human resource management

Etisalat, a telecommunications company based in UAE has recently outsourced the customer service operations to Egypt. Explain the benefits of this HR initiative with respect to the major functions of Human Resource Management. [Choose any 5 HR cha..

  Staffing-organization of project team is key to success

Why is Staffing and Organization of a Project team is the key to Success? What kind of people work at Google? What are their personal qualities? What should be the role in such settings? Please be as detailed as possible. What responsibilities do com..

  Do not feel tied to the inverted pyramid style of writing

According to The New York Times, "When structuring your story, don't feel tied to the 'inverted pyramid' style of writing,

  Illustrate what is virtual network approach to structure

Illustrate what is virtual network approach to structure. Is use of authority also responsibility different compared with o r forms of departmentalization.

  Estimate the time that will be needed to complete fifth unit

A job has an 85 percent learning curve. Estimate the time that will be needed to complete the fifth unit of the job. The time for the first unit is unknown. However, units 2 through 4 took a total of 20.55 hours to complete.

  Concepts of business management and technology management

Explain the difference between the concepts of Business Management and Technology Management.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd