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(Note: This problem will be further developed as a project. Please use your whole name together (last name followed by first, e.g. xuyexiao.xlsx) as you
(Note: This problem will be further developed as a project. Please use your whole name together (last name followed by first, e.g. xuyexiao.xlsx) as you excel file name! In order to help you understanding the investment process, you are required to form a hypothetical portfolio of five stocks. To start, you can pick any five (5) stocks of your interest by researching on http://finance.yahoo.com. After deciding the five stocks, you can find their tick symbols from the same website and download their past five year monthly prices (61 observations for each stock) from December 2014 to December 2019 by first entering the tick symbols and then clicking on "Historical Data" tab. (a) First compute returns using Adj. Close prices in Excel. (b) With these return data, calculate the average returns, standard deviations, pairwise covariance, and correlations for the five stocks. These results will be used later on) (Note: This problem will be further developed as a project. Please use your whole name together (last name followed by first, e.g. xuyexiao.xlsx) as you excel file name! In order to help you understanding the investment process, you are required to form a hypothetical portfolio of five stocks. To start, you can pick any five (5) stocks of your interest by researching on http://finance.yahoo.com. After deciding the five stocks, you can find their tick symbols from the same website and download their past five year monthly prices (61 observations for each stock) from December 2014 to December 2019 by first entering the tick symbols and then clicking on "Historical Data" tab. (a) First compute returns using Adj. Close prices in Excel. (b) With these return data, calculate the average returns, standard deviations, pairwise covariance, and correlations for the five stocks. These results will be used later on)
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