Question
Go to Yahoo Finance, select any three stocks and S&P 500, collect their adjusted close price data on a monthly basis from January 2018 to
Go to Yahoo Finance, select any three stocks and S&P 500, collect their adjusted close price data on a monthly basis from January 2018 to the most recent month, and calculate the monthly returns for each stock and S&P 500. Go to the Department of the Treasury website, collect the 3-month (52-week) treasury bill rate (bank discount rate) at the end of each month from January 2018 to the most recent month. Answer the following questions in the excel file. 1. What is the average monthly return and volatility for each stock? 2. Estimate the correlations between any pair of stocks. 3. Suppose you create a portfolio with equal amounts invested to each stock, what is the average return and volatility for this portfolio? 4. What is the beta for each stock? (You need to show the regression results for each stock in a separate worksheet) 5. What is the beta for this portfolio?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started