Team_project_Final_Semester_Report_Part_2_REVISED - BUS...

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BUS 415: INVESTMENTS AND PORTFOLIO MANAGEMENT TEAM PROJECT REQUIREMENTS PART 2 Beyond the first part, your report should include some solid financial basis for the recommendations. At the very least, your recommendations should go beyond calculating CAPM betas and should utilize more than one type of security analysis tool. You have to deal with the following types of analysis: Analysis Tool 1: Multifactor APT analysis that includes the following tasks: 1. Collect relevant macroeconomic (e.g. S&P 500 returns, GDP, Industrial Production, Unemployment, Interest rate, Excepted inflation, Labor income, etc.) or firm-specific variables (Market Capitalization, BE/ME, P/E, EPS, Price, DY, etc.) that may be significant factors in expected returns analysis. Use monthly or quarterly data for the last five years (if monthly data are not available, e.g. for GDP, extend your observation period or use Industrial Production). 2. Run multiple regression analysis for your portfolio as a whole or for each stock in the sample using STATA and discuss which variables can explain the variations in the expected returns of the sample stocks. Your dependant variable would be the chosen period returns. If you decide to run regressions for the portfolio as a whole, in order to find the portfolio returns use the optimal weights from the Phase 1 of the project. 3.
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This note was uploaded on 09/25/2011 for the course FINA 4320 taught by Professor John during the Spring '11 term at Houston Baptist.

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Team_project_Final_Semester_Report_Part_2_REVISED - BUS...

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