Select the Company “Walmart” and write an integrated risk report in which you need to answer the following questions:

1. What is risk?

2. What return would you have earned investing in this company’s stock during your analysis period? Would you have under or outperformed the market? How much of the performance can be attributed to management?

3. Calculate the average monthly return and standard deviation of returns for all stocks in your group and the S&P 500 index.

4. Find the coefficient of variation for each stock and the index

5. Calculate the covariance and correlation between the returns for all pairs of stocks and between each stock and the S&P 500.

6. Use regression to find the beta for each of the stocks. Use the S&P 500 index as the market index.

7. How risky is this company’s equity? What is its cost of equity?

Answer rating: 100% (QA)

1 Risk is the first variable that comes in mind of every potential investor Investor must know that there are two kinds of risk one is Systematic risk and second is Unsystematic risk Systematic risk i... View the full answer