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Coukl Could you upload the solution of this excel document so that i can download or could you solve the questions with calculations and formulations
Coukl
Could you upload the solution of this excel document so that i can download or could you solve the questions with calculations and formulations in excel?
Go to finance.yahoo.com and find the monthly rates of return over a 2-year period for four companies of your choice. Use the adjusted closing prices at the end of each month to calculate monthly rates of return. Now assume you form each month an equally weighted portfolio of the four firms (i.e., a portfolio with equal investment in each firm). a. Use the Excel function for average (AVERAGE) and sample standard deviation (STDEV) to calculate the average and standard deviation of the returns for each firm and the portfolio. b. Use the Excel's correlation function (CORREL) to find the correlation coefficients between each pair of four stocks. What are the highest and lowest correlations? C. Compare the standard deviation of the monthly portfolio return with that of each firm and with the average standard deviation across five firms. What do you conclude about portfolio diversification? Your grade from this assignment will be considered as your quiz grade. It is an individual assignment but you may work as a group of two. Go to finance.yahoo.com and find the monthly rates of return over a 2-year period for four companies of your choice. Use the adjusted closing prices at the end of each month to calculate monthly rates of return. Now assume you form each month an equally weighted portfolio of the four firms (i.e., a portfolio with equal investment in each firm). a. Use the Excel function for average (AVERAGE) and sample standard deviation (STDEV) to calculate the average and standard deviation of the returns for each firm and the portfolio. b. Use the Excel's correlation function (CORREL) to find the correlation coefficients between each pair of four stocks. What are the highest and lowest correlations? C. Compare the standard deviation of the monthly portfolio return with that of each firm and with the average standard deviation across five firms. What do you conclude about portfolio diversification? Your grade from this assignment will be considered as your quiz grade. It is an individual assignment but you may work as a group of twoStep by Step Solution
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