This assignment will require you to analyze time series of monthly returns for different securities.
[20 points] 3) Calculate the MONTHLY return data for the 10/01/2017 – 09/30/2020 period for the selected three securities. Note: Return for Month 2 = (Adj Close for Month 2/Adj Close for Month 1) – 1
[7 points] 4) Calculate the average arithmetic monthly return, variance, and standard deviation of returns for 10/01/2017 – 09/30/2020 period for the selected three securities. FIN 5130 Mini-case 1 Real-world Application: Risk and Return Dr. Darshana Palkar Page 2 of 2
[8 points] 5) Calculate the covariance and correlation of returns between Company A and Company B for the 10/01/2017 – 09/30/2020 period. What does the correlation indicate?
[15 points] 6) Calculate the stock betas for Company A and Company B for the 10/01/2017 – 09/30/2020 period. What do the betas indicate? Hint: What is a proxy for the market portfolio? What should go in the known-xs array and what should go in the known-ys array?
[25 points] 7) Suppose you invest 50% in Company A and 50% in Company B. What is your portfolio average return and standard deviation?
[15 points] 8) Compare the average return and standard deviation of Company A and Company B from #4 with the portfolio average return and standard deviation from #7. What do you observe? What can you conclude from your findings?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more