Stock question please Go to finance.yahoo.com/stock-center, choose 5 different s

ID: 2658385 • Letter: S

Question

Stock question please

Go to finance.yahoo.com/stock-center, choose 5 different stocks and using their symbols click on “Search Finance.”

a. What is the average daily trading volume (Avg Vol)? What is the market capitalization of the firm? What is its price-earnings ratio (P/E)? What is the amount of dividends paid, if any, and what is the dividend yield (Div & Yield)? What is the firm’s beta?

Go to the bottom of the stock price chart and retrieve the end-of-month stock price of Intel over the last 12 months. Record this information in an Excel spreadsheet and estimate the standard deviation of the stock’s price movements. Repeat the process for all 5 stocks. Which stock does your analysis show to be riskier? Assume that the expected return on these stocks is 0 percent for the next month. Use the value-at-risk method to determine the maximum expected loss of these stocks for the next month, based on a 95 percent confidence level.

Explanation / Answer

The various stocks chosen (including Intel Corporation) and the values sought for these stocks are as tabulated below. The riskier of these stocks has also been identified basis the Coefficient of Variation for each of these stocks as shown in the table below:

Intel Corporation

Apple Inc.

Advanced Micro Devices, Inc.

AT&T Inc.

Microsoft Corporation

Average Daily Trading Volume

25,071,275

24,196,384

65,057,262

43,881,679

26,030,868

Market Capitalization

$228.152 Billion

$1.002 Trillion

$18.214 Billion

$231.263 Billion

$826.482 Billion

Price to Earnings Ratio

21.46

18.79

123.62

6.22

72.73

Dividend amount

$1.20

$2.92

No Dividend paid

$2.00

$1.68

Dividend Yield

2.31%

1.41%

N.A.

6.28%

1.65%

Beta for the entity

0.90

1.14

3.44

0.43

1.24

End of month share price for past 12 months

August-17

35.07

164.00

13.00

37.46

74.77

September-17

38.08

154.12

12.75

39.17

74.49

October-17

45.49

169.04

10.99

33.65

83.18

November-17

44.84

171.85

10.89

36.38

84.17

December-17

46.16

169.23

10.28

38.88

85.54

January-18

48.14

167.43

13.74

37.45

95.01

February-18

49.29

178.12

12.11

36.30

93.77

March-18

52.08

167.78

10.05

35.65

91.27

April-18

51.62

165.26

10.88

32.70

93.52

May-18

55.20

186.87

13.73

32.32

98.84

June-18

49.71

185.11

14.99

32.11

98.61

July-18

48.10

190.29

18.33

31.97

106.08

Mean of 12 month ended prices (Mean = Average of the 12-month ended prices)

46.98

172.42

12.65

35.34

89.94

Standard Deviation of 12 month ended prices (Std Dev)

5.71

10.65

2.37

2.68

9.71

Coefficient of Variation (CoV = Std Dev/Mean; higher value indicates higher risk)

12%

19%

11%

Riskier stock of the lot as CoV is highest