Question
1.) Calculate the annual returns (year-over-year) for the S&P 500 from 2012 through 2021. 2.) Calculate the average annual return across that 10-year span, as
1.) Calculate the annual returns (year-over-year) for the S&P 500 from 2012 through 2021.
2.) Calculate the average annual return across that 10-year span, as well as the standard deviation for S&P 500.
3.) Calculate the annual returns (year-over-year) for both of your stocks from 2012 through 2021.
4.) Calculate the average annual return across that 10-year span, as well as the standard deviation for both of your stocks.
5.) Calculate the correlation between your stocks and the S&P 500.
6.) Assuming a risk-free rate equal to that of 10-year US treasury bonds and a market risk premium of 5%, calculate the required return (SML) for both of your stocks.
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