Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

solve in EXCEL Use adjusted prices for CVS Health Corporation (CVS), General Dynamics (GD), JPMorgan Chase & Co. (JPM), and Kimberly-Clark Corporation (KMB), from December

solve in EXCEL Use adjusted prices for CVS Health Corporation (CVS), General Dynamics (GD), JPMorgan Chase & Co. (JPM), and Kimberly-Clark Corporation (KMB), from December 31, 1990 to December 31, 2020 to answer the following questions. You can find the prices on Yahoo Finance. Assume risk-free rate to be 2.50%. (Note: You should set the beginning date to be before Dec 1, 1990 to get the Dec price. You can set earlier dates as well.)
a.Download month-end adjusted prices of common stocks for the four companies mentioned above. (When you download the month-end price from Yahoo, it is going to show the first day of the month, but the price is from the last day of the month. Only paste the month-end adjusted prices of the 4 companies in the file you submit.)
b.Find yearly returns for 30 years from 1991 to 2020. (You need to use just the year-end prices for this. For example, return for the year 2020 can be found by using the adjusted price of Dec 2019 and adjusted price of Dec 2020.)
c.Find mean (average) annual returns for the 4 stocks.
d.Find the covariance matrix of the four stocks using yearly returns. (assume the order of stocks to be CVS, GD, JPM, and KMB when you set up your spreadsheet. You can use any method for this.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Enron And World Finance A Case Study In Ethics

Authors: P. Dembinski, C. Lager, A. Cornford, J. Bonvin

1st Edition

1403947635, 978-1403947635

More Books

Students also viewed these Finance questions