01 Jul PART A Select and Respond to ONE of the following two writing prompts. Your response should be approximately 500 words and include specific examples (e.g., from your experiences or research). Be sure to cite any material that you have used from another source. Work must be original. Submissions that are copied from other sources (not including appropriately cited quotes) will receive a grade of 0/10. Late submissions will receive a deduction of 2 points per day. Writing Prompts: Use some of the concepts of C. Wright Mills and Peter Berger to explain who you are and why you see the world the way you do. Working through this process will help you to understand that while we are all individuals, we are also the culmination of many social forces. Your investigation should include a discussion of SOME of the following five social factors that were most influential in defining the person you have become: minority status, gender, socioeconomic status, family structure, and urban-rural differences. (Ravelli, pp. 9 -11). Design an ethical research project that investigates obedience and people’s responses to authority (like Stanley Milgrim’s did). Describe your: purpose, hypothesis, method, participants, and potential results. Do you think it would have the ability to yield similar results to Milgram’s experiment? Explain why or why not? (Ravelli, chapter 4)
Assignment 2: Risk and Return. Complete and submit on due date.
Complete the following risk and return exercise.
The purpose of this exercise is to first provide experience in locating, understanding, and analyzing basic stock price data. In addition, the ultimate learning objective is to translate this data into standard measures of risk and return, and to learn how to find the Beta for a security.
1. Retrieve monthly price data for Apple, CVS and the S&P 500 (^GSPC) from Yahoo Finance for the past 2 years. Type in the ticker, then, click historical prices. You will need end of month prices.
2. Compute monthly Holding Period Returns (HPRs).
3. Calculate arithmetic means.
4. Calculate the standard deviation of the monthly HPRs.
5. Repeat steps 1-4 for 1 of the stocks you individually selected for your group portfolio.
6. Perform a linear regression for Apple, CVS, and for 1 of the stock’s you individually selected for your group portfolio. Identify and briefly discuss all the Betas. In your discussion, compare the Betas to those found on Bloomberg and Yahoo Finance.
7. Submit your analysis by e-mail and hard copy.
8. Come to class prepared to discuss your interpretation of the results.
9. Only hard copies handed in will be graded so please be sure to submit organized and easy to follow work.
If you download the data from Yahoo, you will notice that the dates in your spreadsheet don’t look like end of month dates. The prices are indeed the end of month prices. Put the closing prices into the Excel template provided. Now, you’re ready to generate additional rows and columns to complete the
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