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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.

1.Obtain the closing price, the change in price from the previous day, and the beta.
2.find out the return on holding the stock for a day (this should be the change in price over the closing price without the change).
3.find out a portfolio return with weights of 0.25 for each stock.
4.find out a weighted beta with weights of 0.25 for each stock.
5.Summarize the implications of the portfolio return and risk with respect to what you learned about beta and the CAPM.

Use a Microsoft Excel spreadsheet that illustrates your calculations. You may use the formulas embedded in Microsoft Excel and/or a financial calculator for these calculations.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M924890

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