Answered step by step
Verified Expert Solution
Question
1 Approved Answer
there is a note and please solve it based on that note thanks Please note: I) Answers must be motivated and all the steps in
there is a note and please solve it based on that note thanks
Please note: I) Answers must be motivated and all the steps in the calculations are shown. II) Write your full name. III) You are required to do this assignment in Excel. Question 2: ( 2 points) Calculate the portfolio beta using Capital Asset Pricing Model (CAPM) in Excel. Assume that the portfolio is an equally weighted portfolio constructed from the 5 stocks (Amazon, IBM, Intel, Netflix and Walmart). i. Download historical monthly data for Amazon, IBM, Intel, Netflix and Walmart for the last 10 years (i.e., from 2011 - 2020) from yahoo finance into Excel. ii. Download historical monthly data for S\&P 500 for the same time period (i.e., from 2011 - 2020) from yahoo finance into Excel. Use S\&P 500 as a benchmark index, i.e., as a market portfolio. iii. Download historical monthly data for 13 Week Treasury Bill for the same time period (i.e., from 2011 - 2020) from yahoo finance into Excel. Use 13 Week Treasury Bill as a risk-free rate. Question 2: (2 points) Calculate systematic risks (i.e., betas) of each of the 5 stocks using Capital Asset Pricing Model (CAPM) in Excel. Question 2: (2 points) Calculate the portfolio beta using Capital Asset Pricing Model (CAPM) in Excel. Assume that the portfolio is an equally weighted portfolio constructed from the 5 stocks (Amazon, IBM, Intel, Netflix and Walmart). Please note: I) Answers must be motivated and all the steps in the calculations are shown. II) Write your full name. III) You are required to do this assignment in Excel. Question 2: ( 2 points) Calculate the portfolio beta using Capital Asset Pricing Model (CAPM) in Excel. Assume that the portfolio is an equally weighted portfolio constructed from the 5 stocks (Amazon, IBM, Intel, Netflix and Walmart). i. Download historical monthly data for Amazon, IBM, Intel, Netflix and Walmart for the last 10 years (i.e., from 2011 - 2020) from yahoo finance into Excel. ii. Download historical monthly data for S\&P 500 for the same time period (i.e., from 2011 - 2020) from yahoo finance into Excel. Use S\&P 500 as a benchmark index, i.e., as a market portfolio. iii. Download historical monthly data for 13 Week Treasury Bill for the same time period (i.e., from 2011 - 2020) from yahoo finance into Excel. Use 13 Week Treasury Bill as a risk-free rate. Question 2: (2 points) Calculate systematic risks (i.e., betas) of each of the 5 stocks using Capital Asset Pricing Model (CAPM) in Excel. Question 2: (2 points) Calculate the portfolio beta using Capital Asset Pricing Model (CAPM) in Excel. Assume that the portfolio is an equally weighted portfolio constructed from the 5 stocks (Amazon, IBM, Intel, Netflix and Walmart)
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