Question
Exercise Two: On your first day as a summer analyst at BlackRock Investments, your team leader tells you: We need you to perform the following
Exercise Two: On your first day as a summer analyst at BlackRock Investments, your team leader tells you: We need you to perform the following analysis go to Yahoo Finance, and download the historical monthly prices for the last 5 years, for the Dow Jones Industrial Average (^DJI), and the Interest Rate for the 10 Year Note from the US Treasury (^TNX). Then, I want you to find for both time series: (a) the monthly return (b) the average monthly return, (c) the volatility of monthly return, (d) the Coefficient of Variation, (e) in your view, which one has a better risk-to-return ratio why? (Hint: (1) You may use the Statistical Analysis Tab from the Statistical Measures Module as your guide. (2) Please do not forget to include the hat symbol ^ when typing the ticker for both indices. (3) If the DOWNLOAD button is not available in Yahoo Finance, please copy and paste the date into Excel as needed).
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