Practice 2 Stock market (20 points) 1. Go to the Industry Center in Yahoo Finance! 2....

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Practice 2 Stock market (20 points) 1. Go to the Industry Center in Yahoo Finance! 2. Choose an industry and a specific company within this industry. 3. Briefly introduce the company you chose, including name, address, main products, stock price, volume, economic performance, etc. The purpose of doing it is to inform me of what kind of company you chose. 4. Use the Historical Prices option to download the stock of the company. Download Daily data, from Jan. 1, 2016 to Dec. 31, 2021. We only use the Adj Close price. 5. Report the descriptive statistics of the adjusted prices of the company, including Mean, SE, Median, Skewness, Kurtosis, Min, Max, Count, etc. 6. Download the index Dow30 during the same time period and calculate the excess returns on the stock that you chose and the index Dow30. Assume that the return on risk-free asset is 0.2%. 7. Estimate the single-index model R(t) = a + 3Dow30(t) + e(t) where R(t) is the excess return on the stock that you chose. o Report and explain R-square o Report and explain a and 3 o Report and explain t-stat and p-value of the coefficient 3 o DrawalineChartoftheresidual(e). Practice 2 Stock market (20 points) 1. Go to the Industry Center in Yahoo Finance! 2. Choose an industry and a specific company within this industry. 3. Briefly introduce the company you chose, including name, address, main products, stock price, volume, economic performance, etc. The purpose of doing it is to inform me of what kind of company you chose. 4. Use the Historical Prices option to download the stock of the company. Download Daily data, from Jan. 1, 2016 to Dec. 31, 2021. We only use the Adj Close price. 5. Report the descriptive statistics of the adjusted prices of the company, including Mean, SE, Median, Skewness, Kurtosis, Min, Max, Count, etc. 6. Download the index Dow30 during the same time period and calculate the excess returns on the stock that you chose and the index Dow30. Assume that the return on risk-free asset is 0.2%. 7. Estimate the single-index model R(t) = a + 3Dow30(t) + e(t) where R(t) is the excess return on the stock that you chose. o Report and explain R-square o Report and explain a and 3 o Report and explain t-stat and p-value of the coefficient 3 o DrawalineChartoftheresidual(e).

Answer rating: 100% (QA)

Stock Market Practice Analyzing Company Performance with the SingleIndex Model Following the instructions lets analyze a companys performance and its relationship with the Dow Jones Industrial Average ... View the full answer