Question

Practice 2: Bond market 1. Go to the Industry Center in Yahoo Finance! 2. Choose an industry and a specific company within this industry. 3. Briefly introduce the company you chose, including name, address, main products, stock price, volume, economic performance, etc. The purpose of doing it is to inform me of what kind of company you chose. 4. Use the Historical Prices option to download the stock of the company. Download Daily data, from Jan 1st. 2015 to Jan 1st, 2019. We only use the Adj Close price. 5. Report the descriptive statistics of the adjusted prices of the company, including Mean, SE, Median, Skewness, Kurtosis, Min, Max, Count, etc 6. Download the index Dow30 during the same time period and calculate the excess returns on the stock that you chose and the index Dow30. Assume that the return on risk-free asset is 0.2% 7. Estimate the single- index model R() a+BDow30()e) where R() is the excess return on the stock that you chose. o Report and explain R-square o Report and explain a and B Report and explain t-stat and p-value of the coefficient Draw a line Chart of the residual (e).

Answer 1

1. Open Chrome(or any browser) and type industry centre-yahoo finance

2. Select Netflix, Inc. (NFLX) belonging to Media-Diversified industry.

3. Netflix, Inc.

100 Winchester Circle,Los Gatos, CA 95032U,UnitedStates

Netflix, Inc. provides Internet entertainment services, operating

through three segments: Domestic streaming, International streaming, and Domestic DVD. It offers TV series, documentaries, and feature films across various genres and languages.

Volume 4,777,321 and Avg volume 6,768,112

Stock price 360.87 at close: 7 June 4:00PM EDT

The company's economic performance is good because it's liabilities are less than assets and has a 7.62% profit margin when we go through its statistics.

4. Go to historical data. Input the specific date range in MM/DD/YYYY format, set frequency as daily and click apply. Download the data.

5. Open SPSS.

Go to File-Open-Data-Choose .csv file for the location in your computer-continue clicking next only select yes for variables names are included at the top of the file and click Finish

File will open in SPSS

Go to Analyze then Descriptive Statistics, followed by Descriptives

Select 'adj' as variable. Go to options and click desired outputs and okay!