CHECK the CALCULATIONS FOR BETA AND COMPLETE THE CALCULATIONS FOR RETURN.
COMPLETE THE 2 WEIGHTED QUESTIONS AND SUMMARY:
• Calculate a portfolio return with weights of 0.25 for each stock.
• Calculate a weighted beta with weights of 0.25 for each stock.
• Summarize the implications of the portfolio return and risk with respect to what you learned about beta and the CAPM.
Select four stocks from finance.yahoo.com, google.finance.com, or moneycentral.msn.com. One should be a clothing manufacturer, one should be a retailer, one should be an automobile manufacturer, and one should be a restaurant or food producer.
- Abercrombie & Fitch Company - ANF
- Closing price $15.27
- Change in price from the previous day $0.38
- Beta 0.52
The return on holding the stock for a day
HPR = (End Value - Initial Value) / Initial Value
15.27 - 14.89 / 14.89 = 0.02552048
Dillard's Inc. - DDS
Closing price $71.60
Change in price from the previous day $0.20
Beta 1.14
The return on holding the stock for a day
HPR = (End Value - Initial Value) / Initial Value
71.60 -71.40 /71.40 = 0.00280112
Kia Motors Corp. - KIMTF
Closing price $42.00
Change in price from the previous day -$13.75
Beta 0.61
The return on holding the stock for a day
HPR = (End Value - Initial Value) / Initial Value
42.00 - 55.75/55.75= -0.24663677
Panera Bread Co. - PNRA
Closing price $215.02
Change in price from the previous day $1.51
Beta 0.2728
The return on holding the stock for a day
HPR = (End Value - Initial Value) / Initial Value
215.02 - 213.51/213.51= -0.00707227
• Calculate a portfolio return with weights of 0.25 for each stock.
(0.25)(-0.00707227)+(0.25)(0.24663677)+(0.25)(0.00280112)+(0.25)(0.02552048)
• Calculate a weighted beta with weights of 0.25 for each stock.
• Summarize the implications of the portfolio return and risk with respect to what you learned about beta and the CAPM.
Closing price
Change in price from the previous day
Beta
• Calculate the return on holding the stock for a day (this should be the change in price over the closing price without the change).
• Calculate a portfolio return with weights of 0.25 for each stock.
• Calculate a weighted beta with weights of 0.25 for each stock.
• Summarize the implications of the portfolio return and risk with respect to what you learned about beta and the CAPM.
Ford
Closing price
Change in price from the previous day
Beta
• Calculate the return on holding the stock for a day (this should be the change in price over the closing price without the change).
• Calculate a portfolio return with weights of 0.25 for each stock.
• Calculate a weighted beta with weights of 0.25 for each stock.
• Summarize the implications of the portfolio return and risk with respect to what you learned about beta and the CAPM.
Panera Bread
Closing price
Change in price from the previous day
Beta
• Calculate the return on holding the stock for a day (this should be the change in price over the closing price without the change).
• Calculate a portfolio return with weights of 0.25 for each stock.
• Calculate a weighted beta with weights of 0.25 for each stock.
• Summarize the implications of the portfolio return and risk with respect to what you learned about beta and the CAPM.
Attachment:- Part1--Martin-S.rar
Attachment:- Part2--Martin-S.rar