Impact of Beta on Portfolio
Week six, assignment 2
This assignment needs to consist of a portfolio analysis in a Microsoft Word document that is not to exceed three pages. You must also include your portfolio analysis in either Word or Excel. You must show how you calculated the answers.
- Select four stocks from finance.yahoo.com, google.finance.com, or
moneycentral.msn.com. One should be a clothing manufacturer, one should be a
retailer, one should be an automobile manufacturer, and one should be a
restaurant or food producer.
- Obtain the closing price, the change in price from the previous day, and the
- Calculate the return on holding the stock for a day (this should be the
change in price over the closing price without the change).
- Calculate a portfolio return with weights of 0.25 for each stock.
- Calculate a weighted beta with weights of 0.25 for each stock.
- Write up the implications of the portfolio return and risk with respect to
what you learned about beta and the CAPM in 2-3 pages