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Collect daily/weekly/monthly stock price for any three corporations at least (for 3/5/10) years and S&P 500 as a market index. Based on log return calculate
Collect daily/weekly/monthly stock price for any three corporations at least (for 3/5/10) years and S&P 500 as a market index. Based on log return calculate the risk and return for individual securities. Which one is the best investment opportunity and why? Justify your answer. |
Now suppose an equally weighted portfolio of three stocks and the S&P as a market index. Calculate your portfolio risk and return . Based on CAPM what is the required rate of return of each security ? Consider the six-month T-bill rate as risk free rate Interpret your answer. |
For an equally weighted portfolio, what is the portfolio beta for your investment. Please write the interpretation in a text format in excel file. |
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