Portfolio Project Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Step 1

a).

The four stocks that we have selected are Apple (AAPL), Coca-Cola (KO), Costco (COST) and Dollar General (DG) stocks. The one year’s weekly price data for each of the four stocks has been extracted from Yahoo Finance from January 22, 2016 to January 20, 2017. All the four stocks pay dividends.

b).

The 52 closing prices are shown in the excel spreadsheet. None of the stocks had stock splits, however, all four stocks paid quarterly dividends so stock prices have been adjusted for these dividends.

c).

The weekly returns for all the closing prices of four stocks have been computed which are shown in the excel spreadsheet.

d).

The weekly returns for all the closing prices of S&P 500 index have been computed, which are also shown in the excel spreadsheet.

Portfolio Project Harvard Case Solution & Analysis

e).

The betas for each of the four stocks have been estimated using linear regression model in the excel sheet. The betas for each of the four stocks are as follows:

STOCK BETAS
Apple (APPL)	Coca Cola Co (KO)	CostCo Corp (COST)	Dollar General (DG)
1.160	0.617	1.022	1.512

f).

The results of each of the four stocks have been tabulated. The dividend adjusted closing prices of each stock are shown below:

Date	S&P500 Closing Adjusted (GSPC)	Apple (APPL)	Coca Cola Co (KO)	CostCo Corp (COST)	Dollar General (DG)
1/18/2016	1906.90	96.685	38.720	143.952	69.774
1/25/2016	1940.24	92.795	39.512	141.545	72.882
2/1/2016	1880.05	89.630	39.070	134.867	69.580
2/8/2016	1864.78	90.171	39.687	139.232	68.415
2/15/2016	1917.78	92.138	40.294	139.251	69.910
2/22/2016	1948.05	92.972	39.714	140.169	73.814
2/29/2016	1999.99	98.824	40.607	141.311	72.707
3/7/2016	2022.19	98.105	41.611	143.006	82.543
3/14/2016	2049.58	101.616	42.306	143.418	81.601
3/21/2016	2035.94	101.376	42.288	141.807	81.514
3/28/2016	2072.78	105.521	43.448	148.194	85.028
4/4/2016	2047.60	104.245	43.485	142.013	80.158
4/11/2016	2080.73	105.386	42.770	143.437	80.635
4/18/2016	2091.58	101.386	41.323	140.393	79.311
4/25/2016	2065.30	89.931	41.564	138.717	79.769
5/2/2016	2057.14	88.952	42.047	137.540	81.093
5/9/2016	2046.61	87.371	42.074	135.718	79.408
5/16/2016	2052.32	91.907	40.776	134.018	79.486
5/23/2016	2099.06	96.859	41.546	140.020	87.530
5/30/2016	2099.13	94.513	41.787	142.490	89.400
6/6/2016	2096.07	95.391	42.668	145.458	89.050
6/13/2016	2071.22	92.013	41.555	146.416	87.696
6/20/2016	2037.41	90.150	41.070	146.106	89.968
6/27/2016	2102.95	92.554	42.182	146.622	91.286
7/4/2016	2129.90	93.316	42.425	155.385	92.106
7/11/2016	2161.74	95.343	42.659	156.296	89.557
7/18/2016	2175.03	95.227	42.846	157.292	92.917
7/25/2016	2173.60	100.584	40.789	157.057	92.516
8/1/2016	2182.87	103.740	40.649	157.508	92.155
8/8/2016	2184.05	104.982	41.163	158.767	90.729
8/15/2016	2183.87	106.127	41.060	158.233	88.718
8/22/2016	2169.04	103.778	40.499	154.381	73.728
8/29/2016	2179.98	104.545	40.817	148.778	71.599
9/5/2016	2127.81	100.081	39.518	141.922	68.923
9/12/2016	2139.16	111.523	39.396	143.475	70.222
9/19/2016	2164.69	109.378	40.284	143.645	70.648
9/26/2016	2168.27	109.708	39.888	143.626	68.590
10/3/2016	2153.74	110.688	39.332	141.253	68.267
10/10/2016	2132.98	114.152	39.275	141.404	67.600
10/17/2016	2141.16	113.153	39.709	140.292	66.571
10/24/2016	2126.41	110.358	39.803	141.036	66.973
10/31/2016	2085.18	105.622	39.294	133.954	67.159
11/7/2016	2164.45	105.765	38.672	141.093	73.206
11/14/2016	2181.90	107.355	38.559	142.037	75.333
11/21/2016	2213.35	109.042	39.143	143.473	78.459
11/28/2016	2191.95	107.198	38.040	143.671	73.069
12/5/2016	2259.53	111.149	39.921	150.860	75.656