Question: Compute and interpret the beta coefficient for aramex and pfizer new york stock exchange and find out whether the beta coefficient (systematic risk) of these
Compute and interpret the beta coefficient for aramex and pfizer new york stock exchange and find out whether the beta coefficient (systematic risk) of these companies is stable. Based on your results offer some advice to the portfolio managers/investors who are interested in investing in these six companies. To compute the beta coefficient, you must usemonthlystock return data from January 1, 2010 to December 31, 2020. The calculation of the beta coefficients can be done via EXCEL or any statistical software such as Eviews.
1. Provide some background information on the selected companies.
2. Compute the beta coefficient for the selected companies and interpret these values. (Note: to compute the beta coefficient make sure to select the appropriate stock market index. For instance, if the selected company is listed in Abu Dhabi Stock exchange then use the Abu Dhabi Stock market index as a benchmark/market index).
3. Find out whether these beta values are stable or not
. 4. Based on your results in (3) offer some advice to the portfolio managers/investors who are interested in investing in these three companies.
5. Your report must be in the business report format. 6. In the appendix provide computer output (Eviews or EXCEL) of your results.
To view the excel for aramex where the calculation has been done please use the link:
https://drive.google.com/file/d/1RpTglv-nmNPfqb3XNmOGm78PilzRyGvj/view?usp=sharing
To access the excel for pfizer the calculation of beta please use the link:
https://drive.google.com/file/d/1453J5x54aNc94Q4hv5D3gS7wIgtNutQv/view?usp=sharing
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