You can obtain stock pricing and values from finance.yahoo.com or any other credible stock pricing site.
1. Look at the companies listed in Table 8.2. Calculate monthly rates of return for two successive five-year periods. Calculate betas for each subperiod using the Excel SLOPE function. How stable was each company’s beta? Suppose that you had used these betas to estimate expected rates of return from the CAPM. Would your estimates have changed significantly from period to period?

The companies from box 8.2 are
Company – Beta Expected return
Amazon 2.16, 15.4
Ford 1.75, 12.6
Dell 1.41, 10.2
Starbucks 1.16, 8.4
,Disney .96, 7.0
Newmont .63, 4.7
Exxon Mobil .55, 4.2
Johnson & Johnson .50, 3.8
Campbell Soup .30, 2.4

2. Identify a sample of food companies. For example, you could try Campbell Soup (CPB), General Mills (GIS), Kellogg (K), Kraft Foods (KFT), and Sara Lee (SLE).
a. Estimate beta and R2 for each company, using five years of monthly returns and Excel functions SLOPE and RSQ.

Must choose two comapnies from the given list in question 2.

b. Average the returns for each month to give the return on an equally weighted portfolio of the stocks. Then calculate the industry beta using these portfolio returns. How does the R2 of this portfolio compare with the average R2 of the individual stocks?

Must use excel functions SLOPE and RSQ.

This is my second time submitting this assignment,Please use the companies listed. The last solution I received for this assignment was not even for the companies listed above. Please message me if you have any questions.

Comments / Note

 

Get a 10 % discount on an order above $ 100
Use the following coupon code :
WIZARDS35