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.
1.Obtain the closing price, the change in price from the previous day, and the beta.
2.Calculate the return on holding the stock for a day (this should be the change in price over the closing price without the change).
3.Calculate a portfolio return with weights of 0.25 for each stock.
4.Calculate a weighted beta with weights of 0.25 for each stock.
5.Summarize the implications of the portfolio return and risk with respect to what you learned about beta and the CAPM.
Use a Microsoft Excel spreadsheet that illustrates your calculations. You may use the formulas embedded in Microsoft Excel and/or a financial calculator for these calculations.