Assignment 1 - Risk and Returns for Stock
Watch the Excel Video on "How to compute mean, standard deviation, etc".
For your assigned firms, using monthly stock price data for 5 years:
1) Compute the mean, standard deviation, and coefficient of variance for each firm; and
2) Graph the monthly stock prices for each firm (on the same chart). Label the chart appropriately.
3) Compare the two firms which has the lowest standalone risk and best risk-to-return ratio. Discuss the meaning of the computations and graphs.
4) Provide your name and names of assigned firms
5) Submit one Excel Document.
Data Source: Yahoo!Finance, Mergent Online, or Bloomberg data
Assignment 2 - Compute Beta and Sharpe Ratio for Stock
Watch the Excel Videos on Computing Beta Coefficient (3 ways) and Computing the Sharpe Ratio
For your assigned firm, using monthly stock price data for 5 years (some period used in Assignment 1):
1) Compute the beta coefficient for each firm, using S&P 500 Index as the benchmark;
2) Compute the Sharpe Ratio for each firm;
3) Compare the two firms and discuss the meaning of the data (beta and Sharpe Ratio);
4) Compute the beta coefficient for the portfolio of both stocks (assume 50% for each stock).
Data Source: Yahoo!Finance, Mergent Online, or Bloomberg data.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.