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mini project

mini project

Excel Project:  Estimating Beta for GameStop Corp (GME). 

Due Time: Please have your excel file uploaded via Canvas under this page by Midnight of May 15, 2022  Sunday). For more instruction: please refer to the Week 7 Lecture Video clips (CH 13 – Part 2  Time: 31:50 mins); Or the following Youtube Video clip will give you the same info: https://youtu.be/vr1lQeKX8Mc (Links to an external site.)

Following are the steps you can take to complete your project. 

  1. Collect historical GameStop price data.

You will begin by collecting historical stock price data for the company.  Historical stock prices are available on the internet through at the http://finance.yahoo.com (Links to an external site.) website.  At this website you will put the ticker symbol (GME) for GameStop in the symbol box and press “go”.  At this point you will see a page that has financial information about your company.  On the left-hand side of the screen there will be a series of option which you can choose to get more information about your company.  At this point you want to look under “quotes” and choose “historical prices”. 

At this point, you will be given some options about the time period and frequency of the data you are collecting.  You want monthly data beginning January 1, 2017 and ending Apr 30, 2022.  Once you have specified this time period, push the “get prices” button.  After the historical price information appears, you will see an option “download to spreadsheet” at the bottom of the historical price table.  Select this option to bring the information into an excel file.

2. Collect historical S&P500 data.

We would like to compare the activity of an individual company’s stock price to how stock prices are doing in the market overall.  We will use the S&P500 as our benchmark for overall stock market performance.  Just as we gathered historical stock prices, we can gather historical S&P500 data using the http://finance.yahoo.com (Links to an external site.) website.  To do this, use the same procedure as above, but instead of using your company’s ticker symbol, type  “^GSPC” in the symbol box.  Collect monthly S&P500 data for the January 1, 2017 and ending Apr 30, 2022 time period and save the information in an excel file.

Now that you have the information in an excel file, you can use your excel skills to manipulate it as you need.  We will be using the “adjusted close” column for both of your company stock and S&P500.

3. Calculate monthly returns.

Monthly returns report gains or losses in percentage terms.  For example, we will look at our sample company Valero Energy, VLO.  Assume that I bought VLO stock at the beginning of January for $23.09 per share.  If I wanted to sell the same share one month later, at the beginning of February, I would have been able to sell it for $22.76.  Thus, I would have lost $0.33.

Looking at percentage returns gives us an ability to compare how poorly (or well) this VLO investment did relative to other investments.  For example, let’s take a hypothetical company, Roadrunner Enterprises.  Assume that Roadrunner’s stock was selling for $200 a share at the beginning of January.  By the beginning of February, the stock was selling for only $199. If you had bought one share of Roadrunner stock over this time period, you would have lost $1.00.  In absolute (dollar) terms, you would have lost more on the Roadrunner investment.

However, looking at percentage returns, we get a different (and more accurate) picture.

VLO Returns:

                (P2-P1)/P1 = (22.76-23.09)/23.09 = – 0.01429 or -1.429%

Or P2/P1 -1 =22.76/23.09 – 1 = -1.429%

Roadrunner Returns:

                 (P2-P1)/P1 = (199-200)/200 = -0.005 or -0.5%

This allows us to compare different investments relative to the amount of money we have invested in the stock.  For example, if we had had $10,000 at the beginning of January and invested it all in VLO, we would have lost ($10,000)*0.01429 or $142.90.  If, instead, we had invested the money in Roadrunner, we would have lost only ($10,000)*.005 or $50.

Using excel, calculate monthly returns for both your stock and the S&P500 for each month beginning January 1, 2017 and ending Apr 30, 2022.   Calculating these returns will require the “Adjusted Close” for each month-end from beginning January 1, 2017 and ending Apr 30, 2022. 

4.  Manipulate Data and Regression Analysis.

There are several methods for calculating a regression in excel.  For this assignment, we will use the charting capability to calculate beta for our stock.  You will begin by choosing the “insert” option above the excel spreadsheet.  You will choose “chart” and then “XY (scatter)” for the type of chart.  The chart wizard will guide you through the process.

You will want to choose the “series” option to tell excel what data you want to use.  Be sure to use your S&P500 return column for your “X value” and your stock return column for your “Y value”. 

This process will give you a scatter graph that plots your stock’s return and the S&P500 return.  However, it does not give you a regression line or slope.  To get a regression line, you will need to click your left mouse key to make several of the data points turn yellow.  With your mouse pointing to one of these yellow data points, right click your mouse.  Choose “add trendline”.  We will use the default (linear) trend line.  However, you will want to choose “options” so that you can place “display equation on chart”.

You may find that your regression equation is difficult to read if it is placed over the data points.  You can move this equation to the side of the graph (it is in a text box) so that it will be easier to read.

Make sure that you have properly labeled your graph and that your graph has a title.

How it Works

  1. Clіck оn the “Place оrder tab at the tоp menu оr “Order Nоw” іcоn at the bоttоm, and a new page wіll appear wіth an оrder fоrm tо be fіlled.
  2. Fіll іn yоur paper’s іnfоrmatіоn and clіck “PRІCE CALCULATІОN” at the bоttоm tо calculate yоur оrder prіce.
  3. Fіll іn yоur paper’s academіc level, deadlіne and the requіred number оf pages frоm the drоp-dоwn menus.
  4. Clіck “FІNAL STEP” tо enter yоur regіstratіоn detaіls and get an accоunt wіth us fоr recоrd keepіng.
  5. Clіck оn “PRОCEED TО CHECKОUT” at the bоttоm оf the page.
  6. Frоm there, the payment sectіоns wіll shоw, fоllоw the guіded payment prоcess, and yоur оrder wіll be avaіlable fоr оur wrіtіng team tо wоrk оn іt.

Nоte, оnce lоgged іntо yоur accоunt; yоu can clіck оn the “Pendіng” buttоn at the left sіdebar tо navіgate, make changes, make payments, add іnstructіоns оr uplоad fіles fоr the оrder created. e.g., оnce lоgged іn, clіck оn “Pendіng” and a “pay” оptіоn wіll appear оn the far rіght оf the оrder yоu created, clіck оn pay then clіck оn the “Checkоut” оptіоn at the next page that appears, and yоu wіll be able tо cоmplete the payment.

Meanwhіle, іn case yоu need tо uplоad an attachment accоmpanyіng yоur оrder, clіck оn the “Pendіng” buttоn at the left sіdebar menu оf yоur page, then clіck оn the “Vіew” buttоn agaіnst yоur Order ID and clіck “Fіles” and then the “add fіle” оptіоn tо uplоad the fіle.

Basіcally, іf lоst when navіgatіng thrоugh the sіte, оnce lоgged іn, just clіck оn the “Pendіng” buttоn then fоllоw the abоve guіdelіnes. оtherwіse, cоntact suppоrt thrоugh оur chat at the bоttоm rіght cоrner

NB

Payment Prоcess

By clіckіng ‘PRОCEED TО CHECKОUT’ yоu wіll be lоgged іn tо yоur accоunt autоmatіcally where yоu can vіew yоur оrder detaіls. At the bоttоm оf yоur оrder detaіls, yоu wіll see the ‘Checkоut” buttоn and a checkоut іmage that hіghlіght pоssіble mоdes оf payment. Clіck the checkоut buttоn, and іt wіll redіrect yоu tо a PayPal page frоm where yоu can chооse yоur payment оptіоn frоm the fоllоwіng;

  1. Pay wіth my PayPal accоunt‘– select thіs оptіоn іf yоu have a PayPal accоunt.
  2. Pay wіth a debіt оr credіt card’ or ‘Guest Checkout’ – select thіs оptіоn tо pay usіng yоur debіt оr credіt card іf yоu dоn’t have a PayPal accоunt.
  3. Dо nоt fоrget tо make payment sо that the оrder can be vіsіble tо оur experts/tutоrs/wrіters.

Regards,

Custоmer Suppоrt

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