This assignment is about analyzing both systematic risk and unsystematic risk. You are to select at least two securities, preferably stocks, and evaluate the market place for both types of risk. This means evaluating the national economy, the industry in which the security is placed, monetary conditions for interest rates and employment, and potential changes due to innovation or government regulations. Systematic risk is what you assess and calculate using the CAPM model.
Take the information gleaned and write a narrative with your conclusions on market conditions. Then perform the CAPM and show your work. It is suggested that you use two examples, so that you can contrast and compare findings, as this is what an analyst does. We don’t make decisions in a vacuum, so more case analysis is better. Include at least a two paragraph analysis with an overall analysis and a stock recommendation for the investor.
This assignment should be 2 to 4 pages to illustrate all of the information on market information, individual stock descriptive information, and your CAPM model results. Cite where you got the information from.