Nova Southeastern University
H. Wayne Huizenga College of Business and Entrepreneurship
Assignment for Course: FIN 5550 Investments
Submitted to: Dr. Jack DeJong
Submitted by: Dominique Nicholson
N01867286
1295 SW 101st Ter. Apt. 108, Pembroke Pines, FL 33025
(508)364-5830
Date of Submission: 10/08/19
Title of Assignment: Project 1
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any
assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have
also cited any sources from which I used data, ideas of words, whether quoted directly or
paraphrased. I also certify that this paper was prepared by me specifically for this course.
Student Signature: Dominique Nicholson
*******************************************
Instructor’s Grade on Assignment:
Instructor’s Comments:
Beta and Return
Beta is a measure of the volatility, or systematic risk, of an individual stock in
comparison to the unsystematic risk of the entire market (Kenton, 2019). The market has a beta
of 1 and securities which have a beta of 1 are strongly correlated with the market. A beta less
than 1 means the security is less volatile than the market, while a beta greater than 1 indicates the
security is more volatile than the market. A negative beta indicates that the stock is inversely
correlated to the market. The following table shows the 20 stocks I was assigned with the Yahoo
beta, my calculated beta, the intercept and R-square:
Ticker
Company Name
Yahoo
Beta
Calculate
d Beta
Intercept
R-
Square
HRL
Hormel Foods Corp
-0.11
-0.23
0.01
0.02
HST
Host Hotels & Resorts
Inc
1.12
1.16
-0.01
0.43
HPQ
HP Inc.
1.22
1.23
0.00
0.41
HUM
Humana Inc
1.09
1.06
0.01
0.25
1.49
1.50
0.00
0.49
HII
1.23
1.19
0.36
1.30
1.25
0.01
0.50
0.73
0.71
0.01
0.32
ITW
Illinois Tool Works
Inc
1.28
1.24
0.59
ILMN
Illumina Inc.
1.29
1.18
0.01
0.16
1.17
1.21
0.01
0.60
0.70
0.71
0.01
0.16
