Homework Set #3: Chapters 6, 7, & 8"

Due Week 6 and worth 100 points

Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above.

A. Using the two stocks you selected from Homework #1, identify the Beta for each stock. In yo own words, what conclusion can you draw from the stocks' current and historical beta? If the stock market went up 10% today, what would be the impact on each of your stocks?

B. Using the 2014 financial statements from your stocks above and the equations from your textbook, prepare the Historical Average and Standard Deviation for each stock

Theaccounting coverup ofArthur Andersen. When the US government announced its intent to prosecute Arthur Andersen in 2002 forthe role he played in the Enron fraud case.He wasoriginally convicted of fraud, but the conviction was overturned on appeal.With the allegation of corporate malfeasance in its auditing procedures, his reputation, and subsequently the company was destroyed.Media coverage claiming inappropriate auditing or ignoringflagrant irregularities by any sized CPA firm can ruin that firm, whether criminal charges are ever filed.Tyco embezzlement. The CEO and CFO of Tyco was accused of embebezzling the company's coffers for they own personal and lavish lifestyle.They used corporate money to purchase luxury homes, lavish vacations and expensive jewelry.These actions defrauded shareholders, as there was less money than claimed available for their use.In small businesses, as in Tyco's case, it is often a trusted, long term employee who embezzles funds to support a desired lifestyle.

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