Calculate a portfolio return with weights

Assignment Help Financial Management

Reference no: EM131308575

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

Reference no: EM131308575

Questions Cloud

Write a paper about nosql as mechanism for storage of data : Write a 4 page technical paper about the NOSQL as a mechanism for storage and retrieval of data. It must have a technical background - don't write a business paper and business scenarios.

Makes semiannual interest payments : Assume that you are considering the purchase of a 15-year, non-callable bond with an annual coupon rate of 6.30%. The bond has a face value of $1000, and it makes semiannual interest payments. If you require a 10.50% yield to maturity on this investm..

Community-scale wood-pellet manufacturing plant : How would a community-scale wood-pellet manufacturing plant align with Porter and Kramer's (2011) creating shared value approach? What would be the mechanisms of creating shared value for the towns in Western MA?

Contemporary organization evaluation : In today's fast-paced and global community, most organizations are faced with constant change. Research contemporary organizations that are currently responding to a significant change within the industry, such as disruptive technology; state, gov..

Calculate a portfolio return with weights : Calculate a portfolio return with weights of 0.25 for each stock. - Calculate a weighted beta with weights of 0.25 for each stock.

What are similarities and differences between osha and niosh : Discuss the responsibility and authority of OSHA as well as OSHA standards. What are the similarities and differences between OSHA and NIOSH?

Cultural factors and unethical behavior : An organization socializes people. It subtly conveys to members that certain actions are acceptable, even though they are illegal. For instance, when executives at General Electric, Westinghouse,

Employees with performance or discipline problems : Why should an organization seek to retain employees with performance or discipline problems? Why not just fire them? What is your underlying philosophy regarding work and equity? Would your answer change if you were in the employer's or the emplo..

How technology has affected our relationship : One way it has changed for the better is allowing people the freedom and flexibility to get an education online. One way that it has changed for the worse is how technology has affected our relationships.

User Account

All Pages