Question: Consult the Web to determine the current recommendation for your companys stock from financial analysts. (A good source for this information is the Fortune Investor.)

  1. Consult the Web to determine the current recommendation for your company’s stock from financial analysts. (A good source for this information is the Fortune Investor.)
  2. Comment on the trend in earnings for your company and future expectations voiced by management.
  3. Chart your company’s stock price for the past 12 months and compare it to changes in the Standard and Poor’s Index (Use another index if your company is in a specialized industry for which an index is published.)
  4. Use the index chosen in part c to compute a beta for your company.

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Regression analysis is used to calculate beta When a price has a beta of 1 it tends to move in lockstep with the market A beta greater than one indica... View full answer

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