Question

• Select 3 companies from different industrial sectors, e.g. high tech (computers, health), consumer non-durables (food, personal services, retailers), cyclical (mining/metals, forestry, oil & gas), etc. Note that one of the companies will be the subject of your term paper assignment described below. Ensure that you can obtain the minimum of 5 years of monthly pricing data required below.
• Obtain at least 5 years of monthly data on prices (60 months).
• Obtain at least 5 years of monthly data on a broad based market indicator (S&P 500, Russell 3000, Wilshire 5000, etc.; do not use the Dow Jones Industrials Average).
• Calculate the average monthly returns (=average function in Excel) , standard deviation of returns (=stdev function) , and correlations of returns (= correl function) , so you’ll have 4 sets for average returns, standard deviation of returns and 6 correlations -- A&B , A&C, and B&C for the companies and A& Market, B& Market, and C and Market.
• Plot prices of stocks & market indicator all vis-à-vis a beginning value of 100 (time series) [ ( P2/P1) x 100 ]

Solution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Companies From Different Industrial Sectors

This is only a preview of the solution. Please use the purchase button to see the entire solution

Related Homework Solutions

Finance Questions
Homework Solution
$30.00
Finance
Mathematics
Accounting
Replication
Annual Annuity
Business
Cash Flows
Finance
Investments
Inflation
Projects
NPV
Services
Percentage
Net Salvage
Optimal Economic Life
Finance Questions
Homework Solution
$83.00
Business
Finance
Portfolio Optimizer
CAPM
Market
Return
Stock
Performance Evaluation
Alpha
Sharpe
Ratio
Deviation
Fixed-Income Performance
Yield-to-Maturity
Rate
Return
UST Coupon
NPV Of The Alternative
Homework Solution
$5.00
Accounting
Business
Finance
Economics
Microsoft Excel
Alternatives
NPV
Rounding Numbers
Constant Dollars
Payments
Cash
Tables
Apple Stock Historical Prices
Homework Solution
$83.00
Accounting
Business
Apple
Stock
Prices
Finance
Economy
Linear Regression Chart
Risk Factor
Financial Statements
Adjusted Closed Price
Balance
Cash Flow
Income
Business Questions
Homework Solution
$28.00
Business
Accounting
Administration
Finance
Economics
Management
Financial Transactions
Cash
Expected Return
Variance
Scales
Stocks
Probability
Percetange
Get help from a qualified tutor
Live Chats