Impact of Beta on Portfolio - 20045

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Impact of Beta on Portfolio

 

Select four stocks from finance.yahoo.com, google.finance.com, or moneycentral.msn.com. One should be a clothing

 

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.

 

 

  1. 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.
  2. Obtain the closing price, the change in price from the previous day, and the beta.
  3. Calculate the return on holding the stock for a day (this should be the change in price over the closing price without the change).
  4. Calculate a portfolio return with weights of 0.25 for each stock.
  5. Calculate a weighted beta with weights of 0.25 for each stock.
  6. 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.

 

 

Solution Description

Delta Apparel=0.26/14.12=1.84%<

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Impact of Beta on Portfolio.zip
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