Compute the "beta" for each stock. What does beta measure? (Use SPY as the measurement of the Market). How does the beta rank for each stock? How does this relate to your previous answers? What is the portfolio beta (for the equally weighed)? What does it indicate?

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Daniel is a part-time Starbucks barista and finance student. As a Starbucks employee, part of his wages was paid in form of RSUs (restricted stock unit). Theses RSUs, also known as Bean Stock will be turned into shares after the employee has worked for 2 continuous years in Starbucks. The reason behind the Bean Stock program is to "turn employees into partners" so that employees can "share in their financial success?." After the vesting period of 2 years, the employee can decide whether to keep the stock or sell the stocks. Daniel has kept his stock for the last 5 years. As a finance student, he knows the importance of time value of money and investing early for retirement. In class he learned that the longer the money has time to accrue the more that investment will grow. He also knows that there are different investment vehicles that give different return on investment. One of the first things he learned was the risk and return concept. To make high returns he has to be willing to take some risk. He could put his money into a savings account or a money market, a very safe and liquid account, or he could take extra risk and put his investment in the stock market. Since he already has Starbucks' stock, he decides that this is the logical move for him. However, he also learned that a rational risk investor will always invest in a diversify portfolio. He is thinking about investing in other companies diversify his portfolio. By diversifying his portfolio, he can reduce risk that is inherent of investing in the stock market. As an investment novice who also has a financial constraint, he decides to look at a number of options. He decides to invest in GM, XPO, VZ, and SPY. General Motors (GM) is an American auto manufacture company who employs over 180,000 people in 5 continents. GM manufactures 8 different car brands, among them include Chevrolet, Buick, GMC and Cadillac. GM brands themselves as a technological innovator. GM is one of the first to "mass-produce an affordable electric car" and development of a self-drive car. They are also making headways to producing a cleaner car. Recently, however, GM has been in the news for discontinuing several models (mainly sedans) and laying off over 14,000 employees. This could however be more of a strategic move than a signal of weak performance. XPO Logistics Inc (XPO) is a logistic company that assists their customers with their supply chain and transportation needs. They help many companies with their online market space and makes sure that goods reach the attended customers. They have 1,529 locations in 32 countries Daniel is a part-time Starbucks barista and finance student. As a Starbucks employee, part of his wages was paid in form of RSUs (restricted stock unit). Theses RSUs, also known as Bean Stock will be turned into shares after the employee has worked for 2 continuous years in Starbucks. The reason behind the Bean Stock program is to "turn employees into partners" so that employees can "share in their financial success?." After the vesting period of 2 years, the employee can decide whether to keep the stock or sell the stocks. Daniel has kept his stock for the last 5 years. As a finance student, he knows the importance of time value of money and investing early for retirement. In class he learned that the longer the money has time to accrue the more that investment will grow. He also knows that there are different investment vehicles that give different return on investment. One of the first things he learned was the risk and return concept. To make high returns he has to be willing to take some risk. He could put his money into a savings account or a money market, a very safe and liquid account, or he could take extra risk and put his investment in the stock market. Since he already has Starbucks' stock, he decides that this is the logical move for him. However, he also learned that a rational risk investor will always invest in a diversify portfolio. He is thinking about investing in other companies diversify his portfolio. By diversifying his portfolio, he can reduce risk that is inherent of investing in the stock market. As an investment novice who also has a financial constraint, he decides to look at a number of options. He decides to invest in GM, XPO, VZ, and SPY. General Motors (GM) is an American auto manufacture company who employs over 180,000 people in 5 continents. GM manufactures 8 different car brands, among them include Chevrolet, Buick, GMC and Cadillac. GM brands themselves as a technological innovator. GM is one of the first to "mass-produce an affordable electric car" and development of a self-drive car. They are also making headways to producing a cleaner car. Recently, however, GM has been in the news for discontinuing several models (mainly sedans) and laying off over 14,000 employees. This could however be more of a strategic move than a signal of weak performance. XPO Logistics Inc (XPO) is a logistic company that assists their customers with their supply chain and transportation needs. They help many companies with their online market space and makes sure that goods reach the attended customers. They have 1,529 locations in 32 countries