problem: Show to your colleagues how you would compute the expected rate of return also called r-hat, & Beta on a self-designed portfolio of four common stocks selected from the NASDAQ or NYSE stock exchanges. Suppose the weighting of the portfolio to be 15%, 30%, 35%, 20%. No two portfolios offered by students can include the same companies. Describe how to compute the standard deviation for each stock in your portfolio using the monthly close stock price [show your computations using Excel if possible].
find out the Beta Coefficient of each stock & the Beta of your portfolio; what does beta mean to you & your selection of stocks compared to your colleagues?
What is the expected return of the portfolio?
|
Name
|
Symbol
|
Exp Price Date (p1)
|
Price today\'s date close(p0)
|
Gain/loss
|
Expected Dividend-same asprevious year
|
Return Percentage
|
Stock Beta from Yahoo
|
Desired Portfolio Percent
|
|
|
|
|
|
$ -
|
|
#DIV/0!
|
|
15%
|
|
|
|
|
|
$ -
|
|
#DIV/0!
|
|
30%
|
|
|
|
|
|
$ -
|
|
#DIV/0!
|
|
35%
|
|
|
|
|
|
$ -
|
|
#DIV/0!
|
|
20%
|
|
|
|
$ -
|
$ -
|
|
|
|
|
100%
|