Posted: March 8th, 2024

Assignment 2: The CAPM and Final Project 4: Report and Presentation

Assignment 2: The CAPM
and Final Project 4: Report and Presentation
Part
One: The CAPM
Olter,
Inc. is starting its risk management program for the company and has asked
for your help in determining critical risk measurements for the firm. The
company has identified several factors in the market that they believe are
critical for your tasks:The risk-free rate is 6%
The required return on the
average stock is 13%
Olter’s average return is 13%Required:
1. What is
Olter’s beta coefficient?
2. How
does the beta coefficient influence the firm’s stock value?
3. What is
the required rate of return for Olter?
4. In
terms of risk, how does Olter compare to the average firm in the market?
5. If
Olter’s beta increased to 1.6, what would you expect to happen to the
required rate of return and what does this mean for the firm?
Deliverable:
By Tuesday,
May 14, 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.
Name
your document SU_FIN2030_W5_A2_part1_LastName_FirstInitial.
Part
Two: Final Project 4: Portfolio Return and Risk; Report and
Presentation
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,
May 14, 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.
Name
your document SU_FIN2030_W5_A2_part2_LastName_FirstInitial.
Part B:
Report and Presentation
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 RiskAnalyze
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.
Name
your document SU_FIN2030_Final_Report_LastName_FirstInitial.
By Tuesday,
May 14, 2013, submit your responses to this Final Project assignment to
the W5: Assignment 2 Dropbox.
2. By Tuesday,
May 14, 2013, create a 10–15 slide Microsoft PowerPoint presentation that
summarizes your findings for all Final Project assignments completed in Weeks
2–5. Submit it to the Discussion Area by Tuesday, May 14, 2013.
Be prepared to answer questions and comment on at least two other
presentations.
Name
your document SU_FIN2030_Presentation_LastName_FirstInitial.Assignment 2 Grading CriteriaMaximum PointsCorrectly
answered the questions in Part One of this assignment.50Researched
available resources and identified the necessary resources for the
assignment.40Correctly
calculated the return for the portfolio.40Effectively
combined all research and data and completed a formal analysis and
presented those findings in an effective final paper.50Prepared
a PowerPoint presentation with the findings for the four-week project and
participated in the discussions.40Wrote
in a clear, concise, and organized manner; demonstrated ethical scholarship
in accurate representation and attribution of sources; displayed accurate
spelling, grammar, and punctuation.30Total:250For assistance with any problems you may
have when completing this assignment—OR—to offer your assistance to
classmates, please use theProblems and Solutions Discussion
area located through the left side navigation link..gif" alt="http://myeclassonline.com/ec/courses/SUO_files/SUOcopyright.gif">.gif" alt="http://myeclassonline.com/ec/courses/SUO_files/su_cnt_alert.gif">

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