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.
discuss cost of capital in finance#
QUESTION (a) What are the main benefits of E-Banking to customers and banking institutions? (b) Internet Banking products and services are of two primary types, informationa
Q. Show the Present Value of a Single Flow ? Discounting or else Present Value of a Single Flow (Lump Sum):- We are able to determine the PV of a future cash flow using the for
Assume we are in the midst of the financial crisis in October 2008. Your firm is considering the purchase of a 10 year put option on the S&P 500 Index. You are analyzing the pricin
State the second element of capital budgeting decision The second element of capital budgeting decision is the analysis of risk and uncertainty. As the benefits from investment
In the Index Amortizing note, the principal is repaid according to an amortization schedule linked to a specific reference rate. It is structured in such a manner
Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of credit limit that electronics give to Booth Plastics.
Table 1: Politics Stability of the existing government structure National/provincial government r
As you checked the Answer Key to Question 6 in the Mastery Check from this lesson you may have noted that each year's net cash flows are calculated by adding depreciation back to n
Explain the Sovereign Risk Sovereign risk denotes a country imposing exchange restrictions on a currency included in a swap making it expensive, or not possible, for a counterp
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd