FIN 534 – Homework Set #3

Required Resources
Brigham, E. F., & Ehrhardt, M. C. (2017). Financial management (15th ed.). Mason, OH: South-Western Cengage Learning.

Supplemental Resources
CNN Money. (2013). General format. Retrieved from http://money.cnn.com/
Criniti, A. (2013). The necessity of finance. Philadelphia, PA: Criniti Publishing Company.
Fidelity Investments, Inc. SWOT analysis. (2013). Fidelity Investments, Inc. SWOT Analysis, 1-8.
Hasseltoft, H. (2012). Stocks, bonds, and long-run consumption risks. Journal of Financial & Quantitative Analysis, 47(2), 309-332. doi: 10.1017/S0022109012000075
Kumar, A. (2009). Who gambles in the stock market? Journal of Finance, 64(4), 1889-1933.
Learn About Finance. (2013). General format. Retrieved from http://learn-about-finance.com/

Why Learn Finance. (2013). General format. Retrieved from https://twitter.com/WhyLearnFinance/finance-list

Homework Set #3: Chapters 6, 7, & 8Worth 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 your 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.
Click here to view the grading rubric.

Points: 100

Homework Set 3: Chapters 6, 7, and 8

Criteria

Unacceptable Below 70% F

Fair
70-79% C

Proficient
80-89% B

Exemplary
90-100%A

1. Using the two stocks you selected from Homework #1, identify the Beta for each stock. In your 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?
Weight: 45%

Did not submit or incompletely calculated the Beta for each of the two stocks selected from Homework #1.

Partially calculated the Beta for each of the two stocks selected from Homework #1.

Satisfactorily calculated the Beta for each of the two stocks selected from Homework #1.

Thoroughly calculated the Beta for each of the two stocks selected from Homework #1.

2. 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.
Weight: 45%

Did not submit or incompletely prepared the Historical Average and Standard Deviation for each stock.

Partially prepared the Historical Average and Standard Deviation for each stock.

Satisfactorily prepared the Historical Average and Standard Deviation for each stock.

Thoroughly prepared the Historical Average and Standard Deviation for each stock.

3. Clarity, writing mechanics, and formatting requirements.
Weight: 10%

More than 6 errors present

5-6 errors present

3-4 errors present

0-2 errors present