Reference no: EM13494655

Project one will be using the Verizon (VZ) Stock.

And the second project will use the Hershey (HSY) Stock.
Use this question for both projects.
Verizon can be with the 48 month and the hershey needs to be 60 month.

We need all the details. Thanks

Questions:

1. Choose a common action of a corporation that is listed on the NYSE and on the basis of prices during the last 60 months to determine their rates of returns during those months and total rate of return; do the same for the same period with the market index represented by the S & P 500.


2. Calculate the beta of the chosen common action, as well as the correlation coefficient of this action to the market. After these results it can derive the characteristic line of action with relation to the market and the respective regression equation. Also derive the security market lines, SML. Draw the corresponding graph. What is your own opinion on the chosen action: this overvalued, undervalued or fairly valued it and recommends buy, sell or hold? Explain.