The following Google Document (https://docs.google.com/spreadsheet/ccc?key=0AmWfxETx4BNfdFZyZkRSOXRPYjRHOUVDa05adGlRYVE&usp=sharing ) presents a spreadsheet of 30 firms in the Dow Jones Industrial Average (and a few more…since we have more than 30 students).
Go to the spreadsheet and sign up for a firm (First Come, First Served!)
Fill in the Exchange on which the firm is located (primarily NYSE or NASDAQ).
Beta with the DJIA as the market rate of return: Create a regression by going to Yahoo-Finance. Download historical stock price data for your company AND historical price data for the Dow Jones Industrial Average (http://finance.yahoo.com/q/hp?s=^DJI+Historical+Prices). Be sure to select the most RECENT 60 MONTHS of DATA.
Beta with the S&P500 as the market rate of return: Create a regression by going to Yahoo-Finance. Download historical stock price data for your company AND historical price data for the S&P 500 Index (http://finance.yahoo.com/q/hp?s=^GSPC+Historical+Prices). Be sure to select the most RECENT 60 MONTHS of DATA.
Here is a short video on how to create a regression (I demonstrate the assignment using Google) (Part 1)
Here is the second short video on how to create a regression (Part 2)
Please submit your Excel document (with the regressions) and a Word file. Label the file LASTNAME-AOL1.docx and LASTNAME-AOL1.xlsx. DO NOT PLACE YOUR NAME INSIDE THE WORD DOCUMENT! Your Word file should contain the following:
1. INTRODUCTION: Describe your firm. When did it go public, who is the current CEO, what does it produce, what is its current stock price, present a snapshot of the firm in your own words.
2. GLOBAL CITIZENSHIP POLICY: Go to the annual report (10K) and see if what type of business your firm is conducting overseas. Is it acquiring firms? Engaged in lawsuits? You can attain great hints from the letter to the shareholders. Is the firm growing?
3. VALUE LINE REPORT: Go to our library webpage and find Value Line. http://www3.valueline.com/secure/vlispdf/stk1700/lookup.aspx. Enter the ticker symbol for your company and pull down the one page PDF report. What do analysts have to say about your company?
4. BETA Analysis: Go to the Google Doc spreadsheet and import the beta YOU calculated using the DJIA as the market rate or return. Also import the beta YOU calculated using the S&P 500 rate of return. Look up the beta using Yahoo Finance and Google Finance. In a few paragraphs, discuss your findings. Is your firm risky? Why or why not? Try to link your answers from Part 2 and 3 to this section.
5. Conclusion: In your opinion, is your firm “risky” compared to other companies on the Google Doc spreadsheet.
6. Works Cited Page (you should also cite sources in your paper with parenthetical citations!).
To make your life a little less complicated, here is the DJIA and S&P500 percentage of change data for your regression: Google-spreadsheetforpercentagechange.xlsxPreview the documentView in a new window