Using Yahoo Finance historical prices (monthly), calculate the monthly returns for the S&P 500 index(^GSPC) and Tesla(TSLA).Using that information, calculate the average monthly return and standard deviation between August 1, 2013 to July 31, 2018. You do not need to show all data points.Printing a few at the top and a few at the bottom is sufficient.It is easier to assign partial credit if you show intermediate steps, or type in and describe the formulas used.

 

August 1, 2013 to July 31, 2018

1)Average monthly Return for Tesla and S&P 500

2)Standard Deviation of Tesla and S&P 500

Step 1: Get the MONTHLY prices on the S&P 500 and Tesla

Step 2: Use prices to calculate monthly period returns

Step 3: calculate average and standard deviation from holding period returns

Step 1: Graph the S&P(x asis) vs Tesla expected returns (y axis)

Step 2: Draw the trend line (regression) and show the Beta and R squared

Step 3: Get the daily prices for S&P and Tesla on August 6 and August 7 2018

Step 4: Compute the return over that trading day period for both.

Step 5: Plug the Rf= 0 and Rm (S&P 1 day return) into the CAPM equation

Step 6: Compare the CAPM answer to the 1 day return for Tesla.

Step 7: Comment on your findings.