Question: Show to your colleagues how you would compute the expected rate of return also called r-hat, & Beta on a self-designed portfolio of four common stocks selected from the NASDAQ or NYSE stock exchanges. Suppose the weighting of the portfolio to be 15%, 30%, 35%, 20%. No two portfolios offered by students can include the same companies. Describe how to compute the standard deviation for each stock in your portfolio using the monthly close stock price [show your computations using Excel if possible].
Calculate the Beta Coefficient of each stock & the Beta of your portfolio; what does beta mean to you & your selection of stocks compared to your colleagues?
What is the expected return of the portfolio?
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Name
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Symbol
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Exp Price Date (p1)
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Price today\'s date close(p0)
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Gain/loss
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Expected Dividend-same asprevious year
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Return Percentage
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Stock Beta from Yahoo
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Desired Portfolio Percent
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$ -
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#DIV/0!
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15%
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$ -
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#DIV/0!
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30%
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$ -
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#DIV/0!
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35%
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$ -
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#DIV/0!
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20%
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$ -
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$ -
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100%
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