Stock Investor Pro Questions

a. Growth stocks are often thought of as having more risk than income stocks. Identify those companies, using the Screen Editor, whose compound growth rate in earnings over the last five years (EPS-Growth 5yr) is greater than 100 percent (100%). Also require that earnings have been positive in each of the last three years, so that EPS Y1 _ 0, EPS Y2 _ 0, and EPS Y3 _ 0.
b. Create a View using the View Editor that shows the compound growth rate in earnings for the past five years (EPS-Growth 5yr), the current dividend yield (Yield), and beta and use it to analyze the companies identified in exercise 1a.
c. Identify income companies, using the Screen Editor, that have a dividend yield (Yield) greater than seven percent (7%). Again, require that earnings have been positive in each of the last three years, so that EPS Y1 _ 0, EPS Y2 _ 0, and EPS Y3 _ 0.
d. Create a View as described in exercise 1b and use it to analyze the companies identified in exercise 1c.
e. Analyze the reports for these growth and income companies and comment on your observations. In particular, compare the average beta for the growth portfolio to that of the income portfolio (do so by creating a View using the View Editor with beta) and run Statistical Summary reports using this View for both portfolios.

a. Sort the Stock Investor Pro database in ascending order by beta. How many of the companies do not have a beta available? Can you determine why their beta is unavailable?
b. How many companies have a negative beta? What is the range for negative betas?
c. Because there are relatively few negative-beta companies, would you expect the demand for these stocks to be strong or weak among institutional portfolio managers?
d. Compare the average level of institutional holdings for stocks with betas below _3.0 and greater than _1.1 versus those with betas under 1.0 and greater than 2.99. Common on your findings.