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Today is December 31, 2017, and you have just started your new job with a financial planning firm. In addition to studying for all your
Today is December 31, 2017, and you have just started your new job with a financial planning firm. In addition to studying for all your licensing exams, you have been asked to review a portion of a client's stock portfolio to determine the risk-return profiles of 12 stocks in the portfolio. Unfortunately, your small firm cannot afford the expensive databases that would provide all this information with a few simple keystrokes, but that's why they hired you. Specifically, you have been asked to determine the monthly average returns and standard deviations for the 12 stocks for the past five years. The stocks (with their symbols in parentheses) are as follows: . AT&T Inc. (T) . The Coca-Cola Company (KO) . ConocoPhillips (COP) Discovery, Inc. (DISCA) FedEx Corporation (FDX) Ford Motor Company (F) Netflix, Inc. (NFLX) Oracle Corporation (ORCL) Pentair plc (PNR) Pfizer Inc. (PFE) Target Corproation (TGT) Union Pacific Corproation (UNP) 3. Compute the mean monthly returns and standard deviations for the monthly returns of each of the stocks. Convert the monthly statistics to annual statistics for easier interpretation (multiply the mean monthly return by 12, and multiply the monthly standard deviation by V12). Today is December 31, 2017, and you have just started your new job with a financial planning firm. In addition to studying for all your licensing exams, you have been asked to review a portion of a client's stock portfolio to determine the risk-return profiles of 12 stocks in the portfolio. Unfortunately, your small firm cannot afford the expensive databases that would provide all this information with a few simple keystrokes, but that's why they hired you. Specifically, you have been asked to determine the monthly average returns and standard deviations for the 12 stocks for the past five years. The stocks (with their symbols in parentheses) are as follows: . AT&T Inc. (T) . The Coca-Cola Company (KO) . ConocoPhillips (COP) Discovery, Inc. (DISCA) FedEx Corporation (FDX) Ford Motor Company (F) Netflix, Inc. (NFLX) Oracle Corporation (ORCL) Pentair plc (PNR) Pfizer Inc. (PFE) Target Corproation (TGT) Union Pacific Corproation (UNP) 3. Compute the mean monthly returns and standard deviations for the monthly returns of each of the stocks. Convert the monthly statistics to annual statistics for easier interpretation (multiply the mean monthly return by 12, and multiply the monthly standard deviation by V12)
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