Problem
Write a 2-page report presenting your analysis of the risk associated with two publically traded stocks and the implications for valuation. Your audience is your employer who has asked to you to complete this report. Reports should be 1-2 pages, double-spaced not including any graphs or images.
I. Calculate the Average Returns, Variance, and Standard Deviation of the stocks.
i. Analyze these values for each firm
ii. Compare these values between firms
II. Find (or calculate) a Beta estimate for each company
Geico and Toyota for example Amazon or eBay etc
i. Compare and contrast these Beta estimates
III. What is the difference between the above measures?
IV. How do these ideas contribute to the valuation of the firm?