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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?



Exp Price Date (p1)

Price today\'s date close(p0)


Expected Dividend-same asprevious year

Return Percentage

Stock Beta from Yahoo

Desired Portfolio Percent





$ -









$ -









$ -









$ -







$ -

$ -







Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919596

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