Four company as discussed
Week 6 assignmnt 2
1. make sure you include all 4 assets in your portfolio
2. Show work, possibly as an excel spreadsheet attached to your writeup
3. Include appropriate citations
Yes. If you have 4 stocks and hold 25% of each then my average return is 25% of each stock’s return summed up.
‘Not sure about your math. For GM ..32 x .25 = .08
RETURNS WEIGHTS WTD RETURN
A 2.02 0.25 0.505
T 1.22 0.25 0.305
G 0.32 0.25 0.08
B 1.49 0.25 0.3725
1.2625 EXP RETURN OF PORTFOLIO
BETAS WEIGHTS WTD BETAS
A 1.55 0.25 0.3875
T 2.5 0.25 0.625
G 0.5 0.25 0.125
B 0.9 0.25 0.225
1.3625 PORTFOLIO BETA
1. Here I invented some betas and applied the same weights.
Valuation of a firm
• PDF]
Valuation
File Format: PDF/Adobe Acrobat – Quick View
by A Damodaran – Cited by 9 – Related articles
Equity versus Firm Valuation. ¦ It is often argued that equity valuation requires more assumptions than firm valuation, because cash flows to equity …
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CHAPTER 15 FIRM VALUATION: COST OF CAPITAL AND APV APPROACHES
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another approach to valuation where the entire firm is valued, … In the process of looking at firm valuation, we also look at how leverage may or …
pages.stern.nyu.edu/~adamodar/pdfiles/valn2ed/ch15.pdf – Similar
• [PPT]
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File Format: Microsoft Powerpoint – View as HTML
The aim of valuation analysis is to assess the true or intrinsic value of the firm; this value is not observable and the valuation estimates obtained …
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Week 6 assignmnt 2
1. make sure you include all 4 assets in your portfolio
2. Show work, possibly as an excel spreadsheet attached to your writeup
3. Include appropriate citations
Yes. If I have 4 stocks and hold 25% of each then my average return is 25% of each stock’s return summed up.
‘Not sure about your math. For GM ..32 x .25 = .08
RETURNS
WEIGHTS
WTD RETURN
A
2.02
0.25
0.505
T
1.22
0.25
0.305
G
0.32
0.25
0.08
B
1.49
0.25
0.3725
1.2625
EXP RETURN OF PORTFOLIO
BETAS
WEIGHTS
WTD BETAS
A
1.55
0.25
0.3875
T
2.5
0.25
0.625
G
0.5
0.25
0.125
B
0.9
0.25
0.225
1.3625
PORTFOLIO BETA
1. Here I invented some betas and applied the same weights.
Part A: Portfolio Return and Risk
Required:
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.
Deliverable:
By Tuesday, June 18, 2013 , submit the completed assignment to the W5: Assignment 2 Dropbox . 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.
Part B:
Required:
Combine all the research and data you have completed for the Final Project assignments from Weeks 2–4 , along with your results from this week: Week 2 : Amortization Week 3 : Portfolio Analysis Week 4 : Government Securities Week 5 : Portfolio Return and Risk
Analyze and present your findings in a comprehensive final report.
Deliverables:
1. Create a comprehensive report using Microsoft Word. Include a Microsoft Excel document that illustrates your calculations for all weeks. You may use the formulas embedded in Microsoft Excel and/or a financial calculator for these calculations.
PaperThis assignment needs to consist of a portfolio analysis in a Microsoft Word document that is not to exceed three pages. You must also include your portfolio analysis in either Word or Excel. You must show how you calculated the answers.
1. 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.
2. Obtain the closing price, the change in price from the previous day, and the beta.
3. Calculate the return on holding the stock for a day (this should be the change in price over the closing price).
4. Calculate a portfolio return with weights of 0.25 for each stock.
5. Calculate a weighted beta with weights of 0.25 for each stock.
6. Write up the implications of the portfolio return and risk with respect to what you learned about beta and the CAPM in 2-3 pages .
