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Following table list the monthly stock prices for Apple and Amazon from Jan 2020 to Dec 202 Date Apple Amazon SP500(Market Index) 1/1/2021 131.1515 3206.2
- Following table list the monthly stock prices for Apple and Amazon from Jan 2020 to Dec 202
Date | Apple | Amazon | SP500(Market Index) |
1/1/2021 | 131.1515 | 3206.2 | 3714.24 |
2/1/2021 | 120.517 | 3092.93 | 3811.15 |
3/1/2021 | 121.583 | 3094.08 | 3972.89 |
4/1/2021 | 130.8498 | 3467.42 | 4181.17 |
5/1/2021 | 124.0316 | 3223.07 | 4204.11 |
6/1/2021 | 136.5558 | 3440.16 | 4297.5 |
7/1/2021 | 145.4295 | 3327.59 | 4395.26 |
8/1/2021 | 151.3819 | 3470.79 | 4522.68 |
9/1/2021 | 141.2938 | 3285.04 | 4307.54 |
10/1/2021 | 149.5817 | 3372.43 | 4605.38 |
11/1/2021 | 165.0591 | 3507.07 | 4567 |
12/1/2021 | 179.45 | 3381.83 | 4701.21 |
Estimate the following: [09, 3 point each]
- Portfolio Return and risk of a portfolio composed, in equal parts of Apple and Amazon.
- Beta of each. Comment on riskiness of each.
- Given the monthly T-bill rate of 0.03% and Risk premium of 4.87% for Apple and Amazon, Calculate Expected return for Apple and Amazon using CAPM. (Hint: Use the beta calculated in step b to find expected return).
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