Question
I need to choose four stocks including a specific stock (let's say it is A) assigned to me. 1) Choose another stock. Let's say it
I need to choose four stocks including a specific stock (let's say it is A) assigned to me.
1) Choose another stock. Let's say it as B. So, now, you have A & B to construct your two-stock portfolio
2) Choose two more stocks, C and D to construct your four-stock portfolio which consists of stock A, B, C, and D.
3) Make sure you have to keep the order of A,B,C, and D when you construct the portfolios on the excel template.
4) It is assumed that it is January 1, 2016. Then, you are to find monthly prices from yahoo/finance for recent FIVE years
My stocks would be first as IBM, Second as Phillips 66, third as Apple and fourth as JPMC.
I. Calculate Historical data for 5 years for the above four stocks from Yahoo finance site to obtain below three it
Return | Arithmetic Average |
Return | Geometric Average |
Risk | Standard deviation |
2. Calculate below for two stocks IBM and Phillips
Weights of capital invested
Expected Returns
correlation between two stocks IBM and Phillips |
3. Calculate MVP for two stocks IBM and Phillips
4. Using general approach for two stocks IBM and Phillips
5. Using general approach for All FOUR stocks
Please attach the Excel with workings and formulas to make it workable and to understand the concepts.
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