Download 5 years monthly historical stock price(As of Dec 31, 2018) from Yahoo Finance to answer following questions.
(Time period: 01/01/2014 - 01/02/2019), use adjusted close price.
a. Calculate average monthly return and standard deviation of each stock.(2pts)
b. Calculate annualized return and annualized standard deviation of each stock.(2pts)
c. Calculate beta and shapre ratio of each stock.(2pts)
d. Calculate correlation between each stocks.(2pts)
e. Which company's stock can offer the most diversification across other stocks?(2pts)
f. Calculate the portfolio return, stadnard deviation, beta and shapre ratio of portfolio in different allocation. (5pts)
(Allocation scenario is given below)
g. Graph return and standard deviation of each portfolios.(3pts)
f. Which portfolio provide the most risk adjusted return?(2pts)
3 Download 5 years monthly historical stock price(As of Dec 31, 2018) from Yahoo Finance to answer following questions. 4 (Time period: 01/01/2014 - 01/02/2019), use adjusted close price. 5 6 Scenario 5 20% 35% Company Amazon Alphabet Tesla Johnson & Johnson Exxon Mobile S&P 500 Ticker AMZN GOOG TSLA 20% 20% 20% JNJ g. Asset allocation scenario and portfolio statistics Scenario 1 Scenario 2 Scenario 3 Scenario 4 AMZN 10% 40% 10% GOOG 20% 15% 30% 25% TSLA 15% 35% 15% 5% JNJ 10% 20% 10% 35% 20% 20% 5% 25% Portfolio 100% 100% 100% 100% Return STDEV Sharpe Beta XOM 20% ^GSPC 10 11 12 13 14 a. 15 b. 16 c. 17 d. 18 e. 19 f. 20 21 g 22 f. 100% Calculate average monthly return and standard deviation of each stock.(2 pts) Calculate annualized return and annualized standard deviation of each stock.(2pts) Calculate beta and shapre ratio of each stock.(2 pts) Calculate correlation between each stocks.(2 pts) Which company's stock can offer the most diversification across other stocks? (2 pts) Calculate the portfolio return, stadnard deviation, beta and shapre ratio of portfolio in different allocation. (5pts) (Allocation scenario is given below) Graph return and standard deviation of each portfolios.(3pts) Which portfolio provide the most risk adjusted return?(2pts) Weight | AMZN AMZN GOOGTSLAJN GOOG TSLA JNJ XOM XOM Portfolio Portfolio 23 Weight 0% Date + S&P 500 AMZN GOOG TSLA JNJ XOM S&P 500 AMZN GOOG TSLA JN X OM Portfolio 24 25 26 27 28 > Q1 + @ - + 100% 3 Download 5 years monthly historical stock price(As of Dec 31, 2018) from Yahoo Finance to answer following questions. 4 (Time period: 01/01/2014 - 01/02/2019), use adjusted close price. 5 6 Scenario 5 20% 35% Company Amazon Alphabet Tesla Johnson & Johnson Exxon Mobile S&P 500 Ticker AMZN GOOG TSLA 20% 20% 20% JNJ g. Asset allocation scenario and portfolio statistics Scenario 1 Scenario 2 Scenario 3 Scenario 4 AMZN 10% 40% 10% GOOG 20% 15% 30% 25% TSLA 15% 35% 15% 5% JNJ 10% 20% 10% 35% 20% 20% 5% 25% Portfolio 100% 100% 100% 100% Return STDEV Sharpe Beta XOM 20% ^GSPC 10 11 12 13 14 a. 15 b. 16 c. 17 d. 18 e. 19 f. 20 21 g 22 f. 100% Calculate average monthly return and standard deviation of each stock.(2 pts) Calculate annualized return and annualized standard deviation of each stock.(2pts) Calculate beta and shapre ratio of each stock.(2 pts) Calculate correlation between each stocks.(2 pts) Which company's stock can offer the most diversification across other stocks? (2 pts) Calculate the portfolio return, stadnard deviation, beta and shapre ratio of portfolio in different allocation. (5pts) (Allocation scenario is given below) Graph return and standard deviation of each portfolios.(3pts) Which portfolio provide the most risk adjusted return?(2pts) Weight | AMZN AMZN GOOGTSLAJN GOOG TSLA JNJ XOM XOM Portfolio Portfolio 23 Weight 0% Date + S&P 500 AMZN GOOG TSLA JNJ XOM S&P 500 AMZN GOOG TSLA JN X OM Portfolio 24 25 26 27 28 > Q1 + @ - + 100%
