Compute the expected rate of return

Assignment Help Finance Basics

Reference no: EM13219242

Demonstrate to your colleagues how you would calculate the expected rate of return,r-hat, 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 (this is given 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?

Reference no: EM13219242

Questions Cloud

Brain-cognition phenomenon and three-box model of learning : Brain-cognition phenomenon and the Three-Box Model of Learning

Explain how gender norms shifted : explain how gender norms shifted following world war II: what was the new view of men,and how did it differ from the previous view? what was the new vision fo women, and how did it difer from the reality?

Regression analysis to estimate the line of best fit : Compute a three-week weighted moving average for the time series. Compute the MAD, MSE and MPE for this method - regression analysis to estimate the line of best fit

History of bipolar disorder and schizophrenia : iscuss the history of bipolar disorder & schizophrenia and their effects on people.

Compute the expected rate of return : Demonstrate to your colleagues how you would calculate the expected rate of return,r-hat, 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 ..

What would be the short name generated by windows : If I created a file name Budget Analysis 2005.html, what would be the short name generated by Windows?

What is the value of the smallest resistor : The voltage drops across three resistors in series are measured 10V, 15V, and 25V. If the largest resistor is 47 ohms, what is the value of the smallest resistor?

What is the total number of electrons transported : What is the total number of electrons transported from the positive electrode to the negative electrode by the charge escalator from the time the battery is first used until it is completely dead?

Explain what is the corresponding implied forward rate : According to the pure expectations theory of interest rates, how much do you expect to pay for a one-year STRIPS on February 15, 2011? What is the corresponding implied forward rate

User Account

All Pages