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 the below 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 the below stocks.
5. What is the correlation between both of the below 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 the below stocks.
Stock 1 - Apple Inc (AAPL)
Stock 2 - Microsoft Corp (MSFT)
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