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Construct a 50/50 portfolio with Apple (AAPL) and Coca-Cola (KO). What would be the CAPM alpha and beta of this 50/50 portfolio over the period
Construct a 50/50 portfolio with Apple (AAPL) and Coca-Cola (KO). What would be the CAPM alpha and beta of this 50/50 portfolio over the period January 2013 - December 2017?
| Date | APPL Return | KO Return | rf | excess return ^GSPC |
| 12/1/2012 | ||||
| 1/1/2013 | -14.41% | 2.73% | 0.00% | 5.04% |
| 2/1/2013 | -3.09% | 3.97% | 0.00% | 1.11% |
| 3/1/2013 | 0.87% | 4.44% | 0.00% | 3.60% |
| 4/1/2013 | 0.03% | 5.43% | 0.00% | 1.81% |
| 5/1/2013 | 1.57% | -5.53% | 0.00% | 2.08% |
| 6/1/2013 | -11.25% | 0.30% | 0.00% | -1.50% |
| 7/1/2013 | 14.12% | 0.62% | 0.00% | 4.95% |
| 8/1/2013 | 7.67% | -4.74% | 0.00% | -3.13% |
| 9/1/2013 | -1.50% | -0.79% | 0.00% | 2.97% |
| 10/1/2013 | 9.64% | 5.22% | 0.00% | 4.46% |
| 11/1/2013 | 6.38% | 1.57% | 0.00% | 2.80% |
| 12/1/2013 | 1.48% | 3.51% | 0.00% | 2.36% |
| 1/1/2014 | -10.77% | -8.45% | 0.00% | -3.56% |
| 2/1/2014 | 5.12% | 1.00% | 0.00% | 4.31% |
| 3/1/2014 | 2.61% | 1.20% | 0.00% | 0.69% |
| 4/1/2014 | 9.94% | 6.35% | 0.00% | 0.62% |
| 5/1/2014 | 7.27% | 0.29% | 0.00% | 2.10% |
| 6/1/2014 | 3.34% | 3.54% | 0.00% | 1.91% |
| 7/1/2014 | 2.87% | -6.55% | 0.00% | -1.51% |
| 8/1/2014 | 7.22% | 6.18% | 0.00% | 3.77% |
| 9/1/2014 | -1.22% | 2.25% | 0.00% | -1.55% |
| 10/1/2014 | 7.20% | -1.11% | 0.00% | 2.32% |
| 11/1/2014 | 10.12% | 7.04% | 0.00% | 2.45% |
| 12/1/2014 | -6.79% | -5.17% | 0.00% | -0.42% |
| 1/1/2015 | 6.14% | -2.49% | 0.00% | -3.10% |
| 2/1/2015 | 9.64% | 5.17% | 0.00% | 5.49% |
| 3/1/2015 | -2.75% | -6.35% | 0.00% | -1.74% |
| 4/1/2015 | 0.58% | 0.85% | 0.00% | 0.85% |
| 5/1/2015 | 4.10% | 0.99% | 0.00% | 1.05% |
| 6/1/2015 | -3.32% | -4.22% | 0.00% | -2.10% |
| 7/1/2015 | -3.29% | 5.58% | 0.00% | 1.97% |
| 8/1/2015 | -6.91% | -4.28% | 0.00% | -6.26% |
| 9/1/2015 | -1.88% | 2.03% | 0.00% | -2.64% |
| 10/1/2015 | 8.34% | 6.47% | 0.00% | 8.30% |
| 11/1/2015 | -1.00% | 0.64% | 0.00% | 0.05% |
| 12/1/2015 | -10.64% | 1.57% | 0.01% | -1.76% |
| 1/1/2016 | -7.52% | -0.09% | 0.01% | -5.08% |
| 2/1/2016 | -0.67% | 0.49% | 0.02% | -0.43% |
| 3/1/2016 | 13.33% | 7.56% | 0.02% | 6.58% |
| 4/1/2016 | -13.99% | -2.67% | 0.01% | 0.26% |
| 5/1/2016 | 6.53% | -0.45% | 0.01% | 1.52% |
| 6/1/2016 | -3.68% | 1.64% | 0.02% | 0.07% |
| 7/1/2016 | 9.01% | -3.01% | 0.02% | 3.54% |
| 8/1/2016 | 1.81% | -0.46% | 0.02% | -0.14% |
| 9/1/2016 | 7.13% | -2.56% | 0.02% | -0.14% |
| 10/1/2016 | 0.43% | 1.01% | 0.02% | -1.96% |
| 11/1/2016 | -2.66% | -4.83% | 0.01% | 3.41% |
| 12/1/2016 | 5.33% | 4.97% | 0.03% | 1.79% |
| 1/1/2017 | 4.77% | -1.02% | 0.04% | 1.75% |
| 2/1/2017 | 12.89% | 0.94% | 0.04% | 3.68% |
| 3/1/2017 | 5.32% | 1.14% | 0.03% | -0.07% |
| 4/1/2017 | -0.01% | 2.57% | 0.05% | 0.86% |
| 5/1/2017 | 6.34% | 5.38% | 0.06% | 1.10% |
| 6/1/2017 | -5.33% | -1.36% | 0.06% | 0.42% |
| 7/1/2017 | 3.27% | 3.05% | 0.07% | 1.86% |
| 8/1/2017 | 10.27% | -0.63% | 0.09% | -0.04% |
| 9/1/2017 | -5.66% | -1.19% | 0.09% | 1.84% |
| 10/1/2017 | 9.68% | 2.97% | 0.09% | 2.13% |
| 11/1/2017 | 1.66% | -0.46% | 0.08% | 0.29% |
| 12/1/2017 | -1.17% | 1.06% | 0.09% | 3.34% |
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