Đã hoàn thành

Finance Case

I have a finance case with the following queations:

[login to view URL] to [login to view URL] and download the ending monthly stock prices for Colgate-Palmolive for the last 60 months. Use the adjusted closing price, which adjusts for dividend payments and stock splits. Next, download the ending value of the S&P 500 index over the same period. For the historical risk-free rate, go to the St. Louis Federal Reserve Web site ([login to view URL]) and find the three-month Treasury bill secondary market rate. Download the file. What are the monthly returns, average monthly returns, and standard deviations for Colgate-Palmolive stock, the three month Treasury bill, and the S&P 500 for this period?

[login to view URL] is often estimated by linear regression. A model often used is called the market model, which is

R1-Rft= αi+βi [ Rmt- Rft] + €t’

In this regression, Rt is the return on the stock and Rft is the risk-free rate for the same period. Rmt is the return on a stock market index such as the S&P 500 Index. α i is the regression intercept, and βi is the slope (and the stock’s estimated beta). €t represents the residuals for this particular regression. What do you think is the motivation for this particular regression? The intercept αi , is often called Jensen’s alpha. What does it measure? If an asset has a positive Jensen’s alpha, where would it plot with respect to the SML? What is the financial interpretation of the residuals in the regression?

[login to view URL] the market model to estimate the beta for Colgate-Palmolive using the last 36 months of returns (the regression procedure in Excel is one easy way to do this). Plot the monthly returns on Colgate-Palmolive against the index and also show the fitted line.

[login to view URL] the beta of a stock is calculated using monthly returns, there is a debate over the number of months that should be used in the calculation. Rework the previous questions using the last 60 months of returns. How does this answer compare to what you calculated previously? What are some arguments for and against using shorter versus longer periods? Also, you’ve used monthly data, which are a common choice. You could have used daily, weekly, quarterly, or even annual data. What do you think are the issues here?

[login to view URL] your beta for Colgate-Palmolive to the beta you find on finance.yahoo.com. How similar are they? Why might they be different?

Kĩ năng: Tài chính

Xem nhiều hơn: asset positive jensen alpha plot respect sml, yahoo-finance, use case how to, three p, dividend com, daily finance, colgate palmolive, answer financial, financial interpretation residuals regression, use case, rt, Risk model, regression, regression model, market risk, financial p, financial Model, finance\, finance risk, finance in excel, finance excel, finance excel data, finance c, federal, excel finance

Về Bên Thuê:
( 4 nhận xét ) fargo, United States

ID dự án: #1676358

Được trao cho:


Hi, I am interested in the project. I have a degree in Economics, and I am just about to finish a MSc in Finance, in which among others we worked extensively with beta pricing and the CAPM. Regards, Oriol.

$90 USD trong 2 ngày
(13 Đánh Giá)

12 freelancer đang chào giá trung bình $205 cho công việc này


dear sir please check pm

$250 USD trong 3 ngày
(402 Nhận xét)

Hi I would like to apply for the job posted by you. I am a CA. Thanks Rohit Pithisaria

$200 USD trong 7 ngày
(43 Nhận xét)

Good in finance

$250 USD trong 1 ngày
(16 Nhận xét)

Hi, Hope you are doing good. Professionaly i am a chartered certified accountant (ACCA UK) currently serving in KPMG Pakistan. Being a finance expert i consider my self to be equipped with the skills that needed to co Thêm

$180 USD trong 7 ngày
(33 Nhận xét)

An experienced Financial Analyst and Statistician.

$200 USD trong 7 ngày
(23 Nhận xét)

We have required expertise and resources to help you complete the task. Check your inbox for further details.

$250 USD trong 5 ngày
(18 Nhận xét)

Greetings!! Stock Analyst Expert Here. Have a look at your inbox for details and COST PLAN. Thanks

$200 USD trong 5 ngày
(35 Nhận xét)

I am an Electrical Engineer and a Fellow (PhD) of the Indian Institute of Management of Bangalore (IIMB). I have over 35 years of experience of which more than 30 years, is in providing management consulting services t Thêm

$250 USD trong 4 ngày
(0 Nhận xét)

Very specific to finance and stat.

$225 USD trong 1 ngày
(0 Nhận xét)

I am a CFA level II Candidate and I just attempted the Level II this June. Your requirements make sense to me and I would be capable of helping you out. Hope to hear from you soon. Regards.

$220 USD trong 14 ngày
(0 Nhận xét)

Hi I have done a very similar project and I can do this for you in one day. Try me! See PMB for details

$150 USD trong 1 ngày
(0 Nhận xét)