This is my final paper! I just need a couple paragraphs foreach!
1) When regressing Beta manually, you could use daily,weekly, and monthly stock data. Which do you recommend using? Whatthings do you need to consider when making your choice of whichtime frame to use? What are the issues that can happen when usingeach of the 3 time frames?
2) When we discussed relative valuation we introducedthe ratios P/E, P/S and P/B. Knowing that P/E is the most commonlyused of the 3, why would someone choose to use P/S or P/B invaluation? Give as many situations as possible to illustrate yourknowledge of relative valuation.
3) Explain the winner’s curse phenomenon and how itaffects IPO pricing. Give an example with numbers ifpossible.
