ScenarioCapital markets and the ability to raise funds for corporate uses are essential to the U.S....

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ScenarioCapital markets and the ability to raise funds for corporate uses are essential to the U.S. economic system.For this assignment, imagine you have $25,000 to invest in U.S. companies. You are buying used stock.You are investing, or buying, the stock because you believe the three companies you choose will make money and pay you a dividend in cash. Each share of stock you buy entitles you to any dividend declared and a vote at the annual stockholders' meeting.The stocks you choose also give you the ability to earn your money back by selling the stock. Of course, investing in stocks is risky, and there is the possibility that the stock you buy will be worth less when you want your money back. The company is not obligated to give you any of your money back. You will only get your money back if another investor wants to buy your stock.InstructionsUsing the abovescenario and the resources listed below, complete the following directions foryour Week 3 Stock Journal entry:	Use your knowledge and experienceto select three publicly tradedU.S. companies.			Make sure you are practicing good diversification.Diversification means you are not selecting three companies from the same industry. For example, you would not want to choose Target, Walmart, and Sam’s Club because they sell the same types of products. A better choice would be Amazon, Uber, and Kroger, because they sell different products and services.			You may wish to visitStatistics, Surveysand Government Resourcesto find such companies. For stock price information, you may use the New York Stock Exchange, NASDAQ, Yahoo! Finance, orThe Wall Street Journal.				Determine how you will divide $25,000 across the three companies (for example, $10,000 in Company 1, $10,000 in Company 2, and $5,000 in Company 3).			Decide the amount you are investing in each company. You need not provide any analysis to justify your decisions.				Provide a reason for picking each company.			For example, you might invest in Ford because that company gets a lot of your money, and you hear that Ford is doing welland will continue to do well.				Identify the number of shares you are buyingand the price of the shares you are buying for each company.			Once you decide the companies and the amount you will invest in each company, determine how many shares you can buy. For example, if Company 1 is selling for $42.16, then you may buy $10,000/$42.16, or 237.19 shares. But you cannot buy a part of a share, so you decide to buy either 237 or 238. In this example, you buy 237 shares at $42.16 per share, investing $9,991.92. You will not be able to buy exactly $10,000, or $5,000, or $25,000, but it will be relatively close.		use the same companies used for the stock journal assignment.	only do week 3 on the excel sheet

Ishmeet Singh · Accepted Answer

Stress Regression Results
	SUMMARY OUTPUT
	Regression Statistics
	Multiple R	0.9178437076
	R Square	0.8424370716
	Adjusted R Square	0.4485297505
	Standard Error	0.0231832917
	Observations	15
	ANOVA
		df	SS	MS	F	Significance F
	Regression	10	0.0114945935	0.0011494593	2.1386682261	0.2414052395
	Residual	4	0.0021498601	0.000537465
	Total	14	0.0136444535
		Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
	Intercept	-0.3792214175	1.4240285805	-0.2663018304	0.8031705383	-4.3329585995	3.5745157646	-4.3329585995	3.5745157646
	Nominal
 GDP growth	-0.002433308	0.0063739148	-0.3817603631	0.7220530958	-0.0201301327	0.0152635166	-0.0201301327	0.0152635166
	Nominal disposable
 income growth	0.0048272007	0.0063160964	0.7642696371	0.4873023993	-0.0127090943	0.0223634958	-0.0127090943	0.0223634958
	Unemployment
 rate	-0.0111185897	0.1154793174	-0.0962820869	0.9279275585	-0.3317405751	0.3095033958	-0.3317405751	0.3095033958
	CPI inflation rate	-0.0114067113	0.0101231381	-1.126795987	0.3228499565	-0.0395130484	0.0166996258	-0.0395130484	0.0166996258
	Mortgage rate	0.0026028832	0.0377363311	0.0689755232	0.9483195686	-0.1021699685	0.1073757349	-0.1021699685	0.1073757349
	Prime rate	-0.0512948202	0.0529427312	-0.9688737058	0.3874730735	-0.1982874071	0.0956977667	-0.1982874071	0.0956977667
	Dow Jones Total Stock Market Index (Level)	-0.0000006803	0.0000085636	-0.0794351406	0.9405018324	-0.0000244567	0.0000230962	-0.0000244567	0.0000230962
	House Price Index (Level)	0.0092244675	0.0052618088	1.7530982117	0.1544563338	-0.0053846556	0.0238335907	-0.0053846556	0.0238335907
	Commercial Real Estate Price Index (Level)	-0.0040370898	0.0013130125	-3.0746773737	0.037123428	-0.0076825969	-0.0003915827	-0.0076825969	-0.0003915827
	Market Volatility Index (Level)	0.0002333836	0.0011100118	0.2102532262	0.8437456973	-0.0028485033	0.0033152704	-0.0028485033	0.0033152704
	RESIDUAL OUTPUT					PROBABILITY OUTPUT
	Observation	Predicted IRRp	Residuals	Standard Residuals		Percentile	IRRp
	1	-0.0476754382	-0.0087042835	-0.7024120472		3.3333333333	-0.0563797217
	2	-0.0158540509	0.0034244334	0.2763424762		10	-0.0137385413
	3	0.0047618391	-0.0037128745	-0.2996188876		16.6666666667	-0.0124296175
	4	0.0613865389	0.0105550295	0.8517622212		23.3333333333	-0.0036974931
	5	0.0170188245	-0.0011084414	-0.089448209		30	-0.0016621014
	6	-0.0066205589	0.0218902605	1.7664845846		36.6666666667	0.0010489646
	7	0.0069754514	-0.0086375528	-0.6970270612		43.3333333333	0.0076529544
	8	0.0394904028	0.0121930543	0.9839463803		50	0.00805945
	9	0.0317946913	-0.0237352412	-1.9153695249		56.6666666667	0.0152697016
	10	0.007291654	-0.010989147	-0.8867943295		63.3333333333	0.0159103831
	11	-0.0074658865	-0.0062726549	-0.5061862168		70	0.0271869903
	12	0.0496058408	-0.0063679875	-0.5138792984		76.6666666667	0.0390800324
	13	-0.0110573103	0.0187102647	1.5098675633		83.3333333333	0.0432378533
	14	0.0301000042	0.0089800282	0.7246638945		90	0.0516834571
	15	0.0334118781	-0.0062248878	-0.5023315457		96.6666666667	0.0719415684
Portfolio Design
	AMAZON		IRRa	FACEBOOK		IRRfb	FSMDX		IRRf	CDOFX		IRRc	VOO		IRRv	S&P 500 Benchmark		IRRb		Stress Test
	Date	Adj Close	IRRa	Date	Adj Close	IRRfb	Date	Adj Close	IRRf	Date	Adj Close	IRRc	Date	Adj Close	IRRv	Date	Adj Close	IRRb		IRRp	Nominal
 GDP growth	Nominal disposable
 income growth	Unemployment
 rate	CPI inflation rate	Mortgage rate	Prime rate	Dow Jones Total Stock Market Index (Level)	House Price Index (Level)	Commercial Real Estate Price Index (Level)	Market Volatility Index (Level)
	11/1/15	664.799988		11/1/15	104.239998		11/1/15	15.178766		11/1/15	26.884869		11/1/15	173.21405		11/1/15	2080.409912			-5.64%	5.7	5.1	5.4	2.7	3.8	3.3	21630.9	170.2	244.9	18.9
	12/1/15	675.890015	1.67%	12/1/15	104.660004	0.40%	12/1/15	14.261224	-6.04%	12/1/15	24.07338	-10.46%	12/1/15	169.195267	-2.32%	12/1/15	2043.939941	-1.75%		-1.24%	2.4	4.7	5.1	1.5	4	3.3	19959.3	172.6	249.9	40.7
	1/1/16	587	-13.15%	1/1/16	112.209999	7.21%	1/1/16	13.798174	-3.25%	1/1/16	24.435295	1.50%	1/1/16	161.844681	-4.34%	1/1/16	1940.23999	-5.07%		0.10%	0.5	0.7	5	0.1	3.9	3.3	21100.9	175.1	249.9	24.4
	2/1/16	552.52002	-5.87%	2/1/16	106.919998	-4.71%	2/1/16	13.951888	1.11%	2/1/16	24.679005	1.00%	2/1/16	161.507782	-0.21%	2/1/16	1932.22998	-0.41%		7.19%	1.2	3	4.9	-0.1	3.7	3.5	21179.4	177.3	241.6	28.1
	3/1/16	593.640015	7.44%	3/1/16	114.099998	6.72%	3/1/16	15.091187	8.17%	3/1/16	26.368671	6.85%	3/1/16	171.687332	6.30%	3/1/16	2059.73999	6.60%		1.59%	5.1	1.7	4.9	2.7	3.6	3.5	21621.5	179.4	245.3	25.8
	4/1/16	659.590027	11.11%	4/1/16	117.580002	3.05%	4/1/16	15.253943	1.08%	4/1/16	26.91221	2.06%	4/1/16	173.212982	0.89%	4/1/16	2065.300049	0.27%		1.53%	3.5	3.3	4.9	1.8	3.

Scenario Capital markets and the ability to raise funds for corporate uses are essential to the U.S. economic system.For this assignment, imagine you have $25,000 to invest in U.S. companies. You are...

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