
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Company Name
Amazon
Microsoft
Apple
Tesla
Ticker
AMZN
MSFT
AAPL
TSLA
2 Visa
V
3 SPDR S&P 500 ETF
SPY
Portfolio Beginning Value (PBV)
5 S&P 500 Index Value
# of shares
Purchased
8 Answer these questions each week.
How much is the market up or down (%)?
0 How much is your portfolio up or down (%) ?
1 Name your biggest winner (%)
2 Name your biggest loser (%).
180
79
145
30
50
26
Purchase Beg.
Price
Value
107.59
252.56
137.59
663.90
199.03
389.63
19,366.20
19,952.24
19,950.55
19,917.00
9,951,50
10,130.38
99,267.87
3,901.36
Current Current
Price
Value
113.55
256.72
150.17
720.20
210.04
385.13
20,439.00
20,280.88
21,774.65
21,606.00
10.502.00
10,013.38
104,615.91
3,817.18
% Change
from begin % weight Beta Value
5.54%
1.65%
9.14%
8.48%
5.53%
-1.15%
19.54%
19.39%
20.81%
20.65%
10.04%
9.57%
5.39% 100.00%
-2.2%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.00
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- Question 1 The following are the monthly rates of returns for two stocks, Stock A and Stock B over 2022. Month 1 2 3 4 5 6 7 8 9 10 11 12 Stock A 2.52% -3.2% 0.54% 1.32% 2.56% 1.10% 1.85% 0.58% 1.98% 0.05% 1.15% 2.23% Stock B 1.37% Page 3 of 5 1.58% 0.98% -0.78% 0.98% 1.35% -2.04% 0.87% 2.09% -0.07% 1.78% 0.63% (a) What is the average monthly rate of return for each stock? What is the standard deviation of returns for each stock? (b) Calculate the covariance between the rates of return. Calculate the correlation coefficient between the rates of return. ortfolio Analysis (c) Comment on the diversification benefits of constructing a portfolio of these two stocks.arrow_forwardSuppose you invested in the following three stocks and their corresponding Betas are as follows: Stocks Invested amount Beta Pfizer $9,038 1.56 Uber $2,194 0.83 Twitter $9.052 1.37 What is the beta of your portfolio (all investments)? (Round your answer to 2 decimal point)arrow_forward# 1 A firm issues preferred stock with a dividend of $3.42. If the appropriate discount rate is 7.05% what is the value of the preferred stock? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity %23arrow_forward
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