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Can someone please help with us! they're one giant problem. Also can someone please give the link, or a way to get to the rate
Can someone please help with us! they're one giant problem. Also can someone please give the link, or a way to get to the rate of returns to the five companies i've choose? I don't know how to work yahoo fiance. Thanks!
The five companies I've choosen are:
MicroSoft
Apple Inc.
Activision Blizzard
Sony
Amazon
Go to flnance.yahoo.com, and find the monthly rates of return over a 2-year period for five companies of your choice. Now assume you form each month an equally weighted portfolio of the five firms (i.e., a portfolio with equal investments in each firm). What is the rate of return each month on your portfolio? Compare the standard deviation of the monthly portfolio return to that of each firm and to the average standard deviation across the five firms. What do you conclude about portfolio diversification? Return to the monthly returns of the five companies you chose in the previous question. a. Using the Excel functions for average (AVERAGE) and sample standard deviation (STDEV), calculate the average and the standard deviation of the returns for each of the firms. b. Using Excel's correlation function (CORREL), find the correlations between each pair of five stocks. What are the highest and lowest correlations? c. Try finding correlations between pairs of stocks in the same industry. Are the correlations higher than those you found in part (b)? Is this surprising? Go to flnance.yahoo.com, and find the monthly rates of return over a 2-year period for five companies of your choice. Now assume you form each month an equally weighted portfolio of the five firms (i.e., a portfolio with equal investments in each firm). What is the rate of return each month on your portfolio? Compare the standard deviation of the monthly portfolio return to that of each firm and to the average standard deviation across the five firms. What do you conclude about portfolio diversification? Return to the monthly returns of the five companies you chose in the previous question. a. Using the Excel functions for average (AVERAGE) and sample standard deviation (STDEV), calculate the average and the standard deviation of the returns for each of the firms. b. Using Excel's correlation function (CORREL), find the correlations between each pair of five stocks. What are the highest and lowest correlations? c. Try finding correlations between pairs of stocks in the same industry. Are the correlations higher than those you found in part (b)? Is this surprisingStep by Step Solution
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