Need step-by- step explanation.

1. Find the Sharpe Ratio of the FollowingTechPortfolio. Use stock data from tidyquant package, use thecontrafund.csv(Links to an external site.) toget thedata for therisk freerate.

Stocks:Facebook(FB),Amazon(AMZN),Microsoft(MSFT),Google (GOOGL)

Weights: 30%, 20%, 10%, 40%

Date Range:1stJan 2017- 31stDecember 2017

Also, did this portfoliooutperformthemarket in the same year?(Hint:Use the cumulative returns of the market and portfolio for thisperiod)

A. 0.76, Yes

B. 0.91, Yes

C. 0.76, No

D. 0.91, No

2. Use stock data from tidyquant package to answer this question .

You have a portfolio of $10,000. The stocks in your portfolio are as follows:

Weights

AMZN 0.3

VMW0.1

MSFT0.4

AMD0.2

The baseline stock for this portfolio is S&P 500 (^GSPC). Use stock data from January 1, 2010 till January 1, 2021.Use monthly returns.

What is the beta of the portfolio?

A. 1.16

B. 1.24

C. 1.19

D. 1.21

3. Use stock data fromtidyquantpackage to answer this question.

Create 5 new portfolios with the following weights

Portfolio 1 2 3 4 5

AMZN 0.25 0.4 0.1 0.20.5

VMW 0.25 0.2 0.5 0.10.1

MSFT 0.25 0.3 0.2 0.40.3

AMD 0.25 0.1 0.2 0.30.1

The baseline stock for this portfolio is S&P 500 (^GSPC). Use stock data from January 1, 2010 till January 1, 2021. Use monthly returns.

Which portfolio has the highest beta?

A.Portfolio 3

B. Portfolio 1

C. Portfolio 4

D. Portfolio 5