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For your company perform the following. Perform a histogram of the returns Evaluate the standard deviation of the returns Plot the growth of the last two years of quarterly earnings Evaluate the CAPM,...

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For your company perform the following.
Perform a histogram of the returns
Evaluate the standard deviation of the returns
Plot the growth of the last two years of quarterly earnings
Evaluate the CAPM, F&F3-Factor, and Carhart 4-factor models for your company
Identify the most concerning component of the recent 10-q’s
    
    A.O. Smith Corp
Answered Same Day Nov 07, 2021

Solution

Kushal answered on Nov 09 2021
159 Votes
For your company perform the following.
Perform a histogram of the returns-
Monthly returns for last 10 years
    Histogram
    less than -10%
    <-10%
    5
    -10% to -6%
    -10%
    9
    -6% to -3%
    -6%
    14
    -3% to 0%
    -3%
    13
    0% to 3%
    0%
    24
    3% to 6%
    3%
    28
    6% to 10%
    6%
    14
    Greater than 10%
    10%
    13
Evaluate the standard deviation of the returns-
    Standard Deviation
    7.04%
    Variance
    0.50%
Plot the growth of the last two years of quarterly earnings-
    Â 
    Â Sep-2019
    Â Jun-2019
    Â Mar-2019
    Â Dec-2018
    Â Sep-2018...
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