American Apparel clothing manufacturer, Bed Bath and Beyond, General Motors, and The Cheesecake Factory.
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.