This assignment will require you to analyze time series of monthly returns. Start by retrieving MONTHLY data for the period of 01/01/2016 - 12/31/2020 from Yahoo website for S&P 500 Index (ticker: ^GSPC)

-APPLE

-TESLA

-Facebook

1) The question is asking to go to Yahoo finance website and look the SAP 500 for Facebook, Telsa and Apple

2) Download the MONTHLY price data for the 01/01/2016-12/31/2020 period for the three securities.

3) Calculate the MONTHLY return data for the 01/01/2016-12/31/2020 period for the selected three securities

4) Calculate the average arithmetic monthly return, variance, and standard deviation of returns for 01/01/2016-12/31/2020 period for the selected three securities.

5) Calculate the covariance and correlation of returns between Company A and Company B for the 01/01/2016-12/31/2020 period. What does the correlation indicate?

6) Calculate the stock betas for Company A and Company B for the 01/01/2016-12/31/2020period. What do the betas indicate? Hint: What is a proxy for the market portfolio? What should go in the known-xs array and what should go in the known-ys array?

7) Suppose you invest 50% in Company A and 50% in Company B. What is your portfolio average return and standard deviation?