Computation of expected rate of return and beta

Assignment Help Finance Basics

Reference no: EM1316555

Computation of expected rate of return and Beta

Demonstrate to your colleagues how you would calculate the expected rate of return also called r-hat, and Beta on a self-designed portfolio of four common stocks selected from the NASDAQ or NYSE stock exchanges. Assume the weighting of the portfolio to be 15%, 30%, 35%, 20%. No two portfolios presented by students can include the same companies. Explain how to calculate the standard deviation for each stock in your portfolio using the monthly close stock price (show your calculations using Excel if possible).

What is the Beta Coefficient (in Yahoo) of each stock and the Beta of your portfolio; what does beta mean to you and 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%

Reference no: EM1316555

Questions Cloud

Computation of return of a given portfolio : Computation of return of a given portfolio of amount invested and this year nothing has changed except for the fact that the market risk premium has increased by 2 percent

Eptember energy consumption levels for single family homes : Findout the consumption level separating the bottom 45% to the top 55%. The September energy consumption levels for single family homes are found to the normally distributed with a mean

What percentage of time does the amount of rainfall : A month is classified as "extremely wet" if the amount of rainfall is in the upper 10% for that month. How much precipitation must fall before a month of April is classified as "extremely wet".

Linear programming problem using commuter bus : Developing a linear programming problem using Commuter Bus scheduling to minimize the total cost.

Computation of expected rate of return and beta : Computation of expected rate of return and Beta and Demonstrate to your colleagues how you would calculate the expected rate of return also called r-hat

Find the value of the second number : The sum of three numbers is 98. The ratio of the first to the second is 2:3, and the ratio of the second to the third is 5:8. Find the value of the second number?

Explain the weaknesses in lawrence sports : Short question based on cash budgeting - Compare Lawrence Sports' use of cash budgeting to the purpose of cash budgeting. Explain the weaknesses in Lawrence Sports' existing working capital policies that lead to their cash flow problem.

What is the probability the son attended college : The following data from a sample of 100 families show the record of college attendance by fathers and their oldest sons: in 22 families, both father and son attended college; in 31 families, neither father nor son attended college; in 12 families,..

Calculate the revised portfolio beta riskiest beta : Calculate the Revised Portfolio beta riskiest beta replaced by risky fewer betas and who believes the economy is slowing down

User Account

All Pages