2024 – The tendency of a stock s price to move up and down with the market is reflected in

FINC 330 Disc + Hws ***Zeek The Geek*** – 2024

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

The tendency of a stock’s price to move up and down with the market is reflected in its beta coefficient. Therefore, beta is a measure of an investment’s market risk, and is a key element of the CAPM.

In this part of the project, you get financial information using Yahoo!Finance (found at http://finance.yahoo.com/ )

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

Desired stock symbol

 To find a company’s beta, enter the desired stock symbol and request a basic quote.  Once you have the basic quote, select the “Key Statistics“. Scroll down this page to find the stock’s beta.

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

In your initial response to the topic you have to answer all 5 questions.

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor.

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

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2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

From Yahoo!Finance obtain a report on any two companies.

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

1.      What are the betas listed for these companies?

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

2.      If you made an equal dollar investment in each stocks what would be the beta of your portfolio?

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

3.      If you made 70% of dollar investment in stock A, and 30% of dollar investment in stock B, what would be the beta of your portfolio? Please how your work.

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

4.      Apply the Capital Asset Pricing Model (CAPM) Security Market Line to estimate the required return on these two stocks. Assumptions and Data: Note that you will need  the risk-free rate and the market risk premium. Assume a 5% market risk premium. To get the current yield on 10-year Treasury securities go to Finance!Yahoo’s (www.finance.yahoo.com)  -click on  Market Data – Bonds.  You will use the current yield on 10-year Treasury securities as the risk-free rate to estimate the required rate of return on stocks. Please show your work.

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

compare

5.      Compare the required return on these stocks calculated using CAPM in question #4 against their historical return over the last 52 weeks, found in the Yahoo!Finance  – Key Statistics.  Is there a difference between these returns?  Is this a problem?  Why is there a difference? 

2024 – The tendency of a stock s price to move up and down with the market is reflected in.

 

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