FRL 330 Assignment 2 Winter 2015
FRL 330 Task 2 Winter 2015 Use the month-to-month knowledge adjusted inventory break up and dividends) for Coca Cola, PepsiCo, MonsterBeverage Company, andDr Pepper Snapple Group within the “Knowledge for FRL 330 Task 2 to reply the next questions.1. What's the anticipated month-to-month price of return for every safety? Commonplace deviation for every safety.Covariance between the charges of return of every safety and S&P500.The correlation coefficient between every safety and S&P500.Run a regression of every safety towards the market return and discover:Alpha for every inventory.Beta for every inventory.R-square?The usual deviation of the residuals from every regression.What's the systematic and nonsystematic threat of the every safety?Are the values of the regression coefficients important?For which inventory does market motion clarify a better fraction of return variability?Plot the danger and return of every safety and draw the environment friendly frontiers.Determine which safety dominates on the environment friendly frontier.Graphically establish the minimal variance portfolio by drawing a line tangent to the environment friendly frontierCalculate the required price of return of every safety utilizing threat free price of .01For which inventory had a mean return in extra of that predicated by the CAPM?Graph the connection between anticipated price of return and required price of return point out which safety is beneath or overvalued?