a) Choose 4 different poblicly traded stocks. Assume that you had a total of $10,000 to imest (so invest your funds as dose to $10,000 as possible) b) Allocate the funds as you see fit between the 4 stocks based on prices 25 month a80. c) Go to Yahoo Finance and download the prices on a montihly basis for the last 25 months for each stock. Use the first price as your parchase price. Use the adjusted elose pricen. d) Calculate the initial Value of your iovestunent = No of Shares x Price e) Calculate each of the stocks weight based on initial investment value. So for stock A weipht would be - Value in 5 of A/Total porfolio value in $ f)Calculate monthly returns for each stock, You should have 24 Returns. R=(p2. P1) /91. Calculate expected monthiy return of your stock = the averafe of your returns and then mutiply by 12 to anualice your retuens. Add your results to colunm f 8) Calculate the fisk of the monthly returms by calculating the std deviation (one value) anualize by multiphing the result ty the 5quare root of 12 . (excei function =Sarti. 1.) h) Uhing voar anwal expecected refurns and portfolio weights, calclate the welghted expected return of your poetfolio. 7) Obain the Detas for each stock in Yahoo Finance - These are available in the first sheet that you see whien you get the iaformation for your stock. 3) Assume that the risk free rate is 1.995 ( You can actualiy look for the updated value in Yatioo Finance using the Ticker INX which will give you the fate for the 10 year treasury bond.) and assune that the market return is 8 K. Using that information plus the betas of each stock, calculate the return of each stoch using the CMMM k) Calculate the weighted expected return of your portfolio uning the Expected return calculations that you did Using the CAPM. b) Calculate the portiolio Beta m) Add vour sales pice (The most recent price from your analyis) n) Calculate your value ty multiplying your mumber of shares x sales price? a) Choose 4 different poblicly traded stocks. Assume that you had a total of $10,000 to imest (so invest your funds as dose to $10,000 as possible) b) Allocate the funds as you see fit between the 4 stocks based on prices 25 month a80. c) Go to Yahoo Finance and download the prices on a montihly basis for the last 25 months for each stock. Use the first price as your parchase price. Use the adjusted elose pricen. d) Calculate the initial Value of your iovestunent = No of Shares x Price e) Calculate each of the stocks weight based on initial investment value. So for stock A weipht would be - Value in 5 of A/Total porfolio value in $ f)Calculate monthly returns for each stock, You should have 24 Returns. R=(p2. P1) /91. Calculate expected monthiy return of your stock = the averafe of your returns and then mutiply by 12 to anualice your retuens. Add your results to colunm f 8) Calculate the fisk of the monthly returms by calculating the std deviation (one value) anualize by multiphing the result ty the 5quare root of 12 . (excei function =Sarti. 1.) h) Uhing voar anwal expecected refurns and portfolio weights, calclate the welghted expected return of your poetfolio. 7) Obain the Detas for each stock in Yahoo Finance - These are available in the first sheet that you see whien you get the iaformation for your stock. 3) Assume that the risk free rate is 1.995 ( You can actualiy look for the updated value in Yatioo Finance using the Ticker INX which will give you the fate for the 10 year treasury bond.) and assune that the market return is 8 K. Using that information plus the betas of each stock, calculate the return of each stoch using the CMMM k) Calculate the weighted expected return of your portfolio uning the Expected return calculations that you did Using the CAPM. b) Calculate the portiolio Beta m) Add vour sales pice (The most recent price from your analyis) n) Calculate your value ty multiplying your mumber of shares x sales price
