Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Step 1) Opportunity Set Graph:Combine 2 of your stocks (Ignore the other 2 stocksfor this step only). Construct an investment opportunity set (the curved set) between the two risky assets. Graph the resulting curve and on a Mean-StDev graph. Use the X Y (Scatter) option and allow the lines to cross. On the same graph also graph the capital allocation line for one of your portfolios and the risk-free asset. The risky asset for thecapital allocation line should be a portfolio consisting of 40% of Stock 1 and 60% of stock 2.
Step 2) Regressions: Use the "data analysis" and "regression" features in Excel to complete a regression equation for each of your four stocks. Have Excel display the regression statistics on the "Regression Output" page. Enter the alpha, beta, and R-squared from this in your analysis table. Also, use the "slope" function in Excel to calculate the slope of your line. For both the regression analysis and the slope function, specify the data range for the excess return for your stocks from the "Regression Data" page as the y-variable and the data range for the excess return for the S&P index on the "Regression Data" page as your x-variable.
Step 3) Scatter-Plots: Create a scatter-plot of each of your four stocks where the excess returns for the stock are on the y-axis and the excess returns for the S&P 500 are on the x-axis. Have Excel display the plot on the "Scatter Plot" page. Add a trend-line line by selecting (highlighting) the data series, then right click and select "add trend-line." Also display the regression equation and the R2 value on the chart by right-clicking on the trend-line and then selecting "format trend-line." Enter the alpha and beta from this in your analysis table.
Step 4) Complete Table: On the "Analysis" page you will need tocomplete the table of information. Be sure to use the appropriate cell references where applicable.
Financial Evaluation and Decision Making: The final major element of financial management is the evaluation of the information provided through the accounting and budget proces
Group Activity An example of a budget can be seen below. After viewing the budget, identify the possible reasons for the variations. Budget - Jul / Dec 200X
What is GATT, and what is its goal? GATT is also termed as General Agreement on Tariffs and Trade. It is a treaty which seeks to decrease trade barriers among participant nation
Tests in Investments There are many rules that specify how the past data of share prices can be used to obtain a clue regarding the future prices of shares. Such rules would be
A company has the opportunity to sell an old machine. The machine is fully depreciated to a zero book value but could be sold for $5,000. If the company did not sell the machine, i
Foreign Exchange Market Equilibrium: We say that the foreign exchange market is in equilibrium when deposits of all currencies oer the same expected rate of return (when retu
Complete the financial reporting for each period and develop recommendations using the templates provided. Procedure 1. Read the case study. 2. Complete the financial reports
The formula explained in the above paragraph enables the investor to compute the value of a bond with an embedded option as the difference between the value of an
1. Of course a swaption will be needed. The major reasons being that Bond A is callable after 3 years and matures in 4 years whereas Bond B matures in 5 years. It is understandable
Q. Explain about Death Benefit? Death Benefit - Amounts received under a life insurance contract and paid by reason of death of the insured. (Even though most death benefits ar
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd