Create a dataset that has monthly returns for the following stocks: TSLA, JNJ$,$ GOOGL, and GE from January $1,2018$ to December $31,2022$ using their "adjusted" price. Create an equally weighted portfolio consisting of these stocks and calculate the monthly returns of your portfolio. Import the Market Returns and Risk$-$Free Rate dataset and join with your portfolio to obtain the market return $($market return$)$ and risk$-$free rate $($risk$-$free$).$

Hint: The code to retrieve the necessary data from the tidyquant package on R is as follows: 'stocks $<-$ c$(\text{'}$TSLA$\text{'},\text{'}$JNJ$\text{'},$ 'GOOGL', $\text{'}$GE$\text{'})\%>\%$ tq$\_$get$($get $=$ "stock.prices", from $="2018-01-01",$ to $="2022-12-31")$

Hint: An equally weighted portfolio means that you invest the same proportion of your total investment into each stock. If you have $4$ stocks, you'd invest $25\%$ of your total funds into each.

Dataset Market and Risk Free Return: Market$\_$and$\_$RiskFree$\_$Returns$\_2018\_$to$\_2022.$csv

How many months did this portfolio exceed a $25\%$ return rate?

$1$ month

$2$ months

$3$ months

$4$ months

Utilizing the companies from question above, calculate the following, as a percentage, rounded to four decimal places:

Portfolio standard deviation

GE standard deviation

Portfolio arithmetic average

GE arithmetic average

$8\mathrm{.}3468\%,12\mathrm{.}4647\%,5\mathrm{.}2548\%,-0\mathrm{.}0079\%$

$13\mathrm{.}3434\%,12\mathrm{.}4647\%,2\mathrm{.}2553\%,-0\mathrm{.}0079\%$

$13\mathrm{.}2924\%,12\mathrm{.}4647\%,5\mathrm{.}2548\%,-0\mathrm{.}8925\%$

$8\mathrm{.}3468\%,15\mathrm{.}5614\%,1\mathrm{.}7038\%,-0\mathrm{.}0079\%$

What is the cumulative return of the portfolio rounded to the nearest percent?

$64\%$

$89\%$

$103\%$

$137\%$

Calculate TSLA's average monthly excess return relative to the market. Give your answer as a percentage, rounded to two decimal places.

$3\mathrm{.}69\%$

$-\mathrm{.}74\%$

$-4\mathrm{.}24\%$

$4\mathrm{.}24\%$

Estimate Beta and Adjusted R$2$ using a simple linear model for the portfolio return vs the market return. Which statement has the correct Beta and Adjusted R$2$ output and corresponding correct interpretation?

Beta $=1\mathrm{.}60053$ indicating the fund is less risky than average; Adj. R$2$ is $0\mathrm{.}7724$ indicating the fund is at best, moderately correlated with the overall market.

Beta $=0\mathrm{.}60053$ indicating the fund is riskier than average; Adj. R$2$ is $0\mathrm{.}4064$ indicating the fund is correlated with the overall market.

Beta $=0\mathrm{.}60053$ indicating the fund is less risky than average; Adj. R$2$ is $0\mathrm{.}7724$ indicating the fund is correlated with the overall market.

Beta $=1\mathrm{.}60053$ indicating the fund is riskier than average; Adj. R$2$ is $0\mathrm{.}4064$ indicating the fund is at best, moderately correlated with the overall market.

Create a drawdown chart and table for the portfolio using the Drawdown$()$ functions. Display the top $5$ drawdowns to $4$ digits. What statement below is correct?

During the second largest drawdown, the portfolio fell $23\mathrm{.}12\%$ from its peak. It took $16$ months to reach the bottom and $7$ months to recover. The total episode lasted $23$ months.

During the largest drawdown, the portfolio fell $23\mathrm{.}12\%$ from its peak. It took $23$ months to reach the bottom and $3$ months to recover. The total episode lasted $2$ months.

During the second largest drawdown, the portfolio fell $57\mathrm{.}75\%$ from its peak. It took $23$ months to reach the bottom and $1$ month to recover. The total episode lasted $23$ months.

During the second largest drawdown, the portfolio fell $16\mathrm{.}52\%$ from its peak. It took $14$ months to reach the bottom and $1$ month to recover. The total episode lasted $3$ months.

In which month is the difference between the portfolio return and the market return the highest?