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At beginning of year 2018, Tyler purchased 100 shares of Amazon (AMZN) at price $1,169.47 and 1000 shares of Target (TGT) at $63.14. He compares
- At beginning of year 2018, Tyler purchased 100 shares of Amazon (AMZN) at price $1,169.47 and 1000 shares of Target (TGT) at $63.14. He compares his portfolio return to S&P 500 Index ETF (SPY). Given the following information about security prices, please calculate
Date | AMZN | TGT | SPY |
Dec-17 | $ 1,169.47 | $ 63.14 | $ 260.55 |
Jan-18 | $ 1,450.89 | $ 72.79 | $ 276.65 |
Feb-18 | $ 1,512.45 | $ 72.97 | $ 266.59 |
Mar-18 | $ 1,447.34 | $ 67.74 | $ 258.24 |
Apr-18 | $ 1,566.13 | $ 70.83 | $ 260.62 |
May-18 | $ 1,629.62 | $ 71.12 | $ 266.95 |
Jun-18 | $ 1,699.80 | $ 74.90 | $ 267.29 |
Jul-18 | $ 1,777.44 | $ 79.39 | $ 278.44 |
Aug-18 | $ 2,012.71 | $ 86.10 | $ 287.32 |
Sep-18 | $ 2,003.00 | $ 87.48 | $ 287.73 |
Oct-18 | $ 1,598.01 | $ 82.94 | $ 269.06 |
Nov-18 | $ 1,690.17 | $ 70.38 | $ 274.05 |
Dec-18 | $ 1,501.97 | $ 66.09 | $ 248.47 |
- Holding period returns for AMZN, TGT and SPY for the past year. (6 points, 2 points each)
- Holding period return for your portfolio based on AMZN and TGT for the past year (4 points)
- Standard deviations of holding AMZN, TGT, SPY and the portfolio for the past year (8 points, 2 points each).
- Is this portfolio the most efficient portfolio you can get? Efficient portfolio is a portfolio that has the highest return for the same level of risk. Please provide empirical proof (5 points).
Please calculate the information ratio for your portfolio compared to SPY (5 points).
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