Solve the following questions. Show your work.
Please type your assignment. No handwritten assignment accepted. Highlight your answers in light gray like this: This sentence is highlighted to show you highlighting.
1- Go to yahoo finance (www.finance.yahoo.com) and search for the following two companies: Ford Motors Corporation and General Motors Company. The tickers are F and GM.
2- Find the Betas of each company and answer the following questions:
1- What is the beta for Ford Motors Corporation? Briefly interpret what the number means. What is the unit of it? Percentage? Dollar? For instance, if you find it to be 0.8, is it 0.8%, 80%, $0.8, or something else? What do we compare it to, to determine the riskiness of Ford Motors Company’s stocks?
2- What is the beta for General Motors Company? Briefly interpret what the number means.
3- Which company has higher
a. Systematic risk?
b. Total risk?
c. Unsystematic risk?