Regression Analysis - CAPM

This needs to be done in Excel. The CAPM states that the excess return on a stock is proportional to the excess return on the market. This implies: X stock = beta*(X market) Where X is the excess return = return- (return on risk free asset). One criticism of the CAPM regression we ran in class is that it excludes rel ...continues

Financial ratio and trend analysis

Financial ratio and trend analysis - File contains 3 tabs. Please check first tab, I am totally stumped on the second tab (trend analysis) and the third tab I was able to do some (first colomn), but when I tried to duplicate some of the given 2002 year end ratios - I could not, so I'm not sure how to approach the problem. At ...continues

Calculate the expected rate of return and standard deviation of expected returns of stocks when the probability distribution of expected return are given.

1. Stocks X and Y have the following probability distributions of expected future returns: PROBABILITY X Y Rate of return Y Rate of return X 10% -10% -35% -4% -1% 20% 20% 0% 0% 4% 40% 12% 20% 8% 5% 20% 20% 25% 5% 4% 10% 38% 45% 5% 4% a. Calculate t ...continues

discounted cash flows

How do you compute the adjusted gross margin, adj net sales, and the adusted gross profit given the COGS? Using these numbers how do you compute SD and CV? Refer to attachment

present value in dollars of equity ownership of the subsidiary; price changes due to changes in exchange rates

16-8:  After all foreign and U.S. taxes, a U.S. corporation expects to receive 3 pounds of dividends per share from a British subsidiary this year. The exchange rate at the end of the year is expected to be $1.60 per pound, and the pound is expected to depreciate 5 percent against the dollar each year for an indefinite period. T ...continues

Forcastings

I am working on problem 12.4

Finance - Bonds and their Valuation/2466

I have an excel spreadsheet with 2 question on it. They relate to the valuation of bonds. I have provided the answers, however I am not sure how the answers were derived. I need to know the formula used in Excel to arrive at these answers - or - the steps performed on the HP12C Financial Calculator to arrive at these answers. I ...continues

Forecasts

1. The time series Xt is generated by the ARIMA (1,1,2) model (1-0.60B)(1-B)Xt= (1 - 0.86B + 0.30Bsquared)at Where B is the back-shift operator, and at is white noise. Is there an exponential smoothing algorithm that generates the same forecasts as this model? If so, write down the recurrence form of that algorith ...continues

need a measure of total shareholder wealth for dissertation involving a regression of CEO compensation on shareholder wealth

i am writing an undergraduate disseration looking at performance pay and CEO incentives within the US oil and gas industry. i am looking at about 50 firms over a 5 year period. i need a measure for total shareholder wealth that is relatively easy to calculate (i've only got about 2 weeks), i can easily obtain data for (I have ...continues

Bayesian forecasting

Discuss the differences between Bayesian forecasting and the incorportation of intervention analysis into the ARIMA model-building framework.