Risk and Return

Choose two publicly traded companies from two different industries that have not been chosen by other
students. One stock should be a value stock (low beta, low p/e, low B/M, Low EPS growth rate, Low P/S) and
the other should be a growth stock (high beta, high p/e, high M/B, high EPS growth rate, high P/S). So high
beta means a beta that is higher than the beta of the market, or 1. So high P/E ratio means a P/E ratio that is
higher than the P/E of the market. Go to yahoo.com or NASDAQ.com and download their monthly prices for
the past five years.
a) Estimate the average monthly return for each stock.
B) b) Estimate the standard deviation of monthly returns of each stock
C) which stock has the highest total risk? Which stock has the highest Systematic risk?
Put your answers in the discussion window ( Average means, Standard Deviations, high total and systematic
risk) and attach your Excel for supporting your answers.
Cant do Amazon/ NRG/ Johnson & Johnson/ All State/ or Apple (Students have already picked those)