Download Stock Market Research - Problem Set 30 | Financial Markets | ECON 423 and more Assignments Financial Market in PDF only on Docsity! PRINT Name _________________________________________________________ pledge ________ Professor Byrns Econ 423: Financial Markets Problem Set 30 Show relevant calculations in an attached Excel spreadsheet. Stock Market Research There may be no one right answer to any given question. 1. What is the ticker symbol for the parent company of American Airlines? How did the stock perform (both in points and percentage) between the closing of September 10, 2001 and April 15, 2004? Look at the graph of the prices during the time period. If there are there any unusual patterns, identify events that may have caused them 2. Find a stock screener and list 5 stocks that meet the following criteria: a). Must be in the S&P500, b). have a market cap between $1 and $10 Billion dollars, c). have a positive EPS and d). have a PE under 30. 3. Consider the following portfolios. A. 2525 shares of Gap, Inc., 1250 shares of General Electric, $27,540 cash, and 276.50 Euros B. 2,345,000 shares of Livestar Entertainment (LSTA.ob) and 5,231,321 shares of Ivoice, Inc. and $43,000 cash. (a) Which of these portfolios would you most like to own based only on its total value? (b) Which of the portfolios do you feel is more risky, and why? (c) Which of the portfolios would you expect to earn a higher percentage return on the principal invested (given none of the companies go bankrupt)? (hint: answer should be in line with standard theory.) 4. You have a portfolio consisting of 3 shares of Best Buy inc. and 2 shares of General Motors. Shares of Junkyard Inc. have a mean value of $50 and a standard deviation of $10. Shares of GM have a mean value of $65 and a standard deviation of $15. The co-variance in the prices of shares of GM and Junkyard Inc. is -40. With the information provided calculate: a). The variation and standard deviation of the portfolio b). the correlation of 1 share of GM and 1 share of Junkyard. (Hint: corr=cov/σσxσy) and Var (Qx+Zy ) = Q2(Var X)+Z2(Var Y)- [(2×Q×Z) cov(X,Y)], σ=(Var)1/σ2 = Standard Deviation.
