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Business, 08.07.2021 05:00 annapittbull12

1. Choose 18 companies traded on the NYSE. 2. Your timeline will begin For each stock, find the monthly closing prices for 61 months. The time frame you will use is 5 Jan 2016 through 3 Feb 2021. These data are easily found at Yahoo! Finance (http://finance. yahoo. com) [For reference go to Risk and Return Calculation Videos Posted on Learn, both explanation and excel example]. In Yahoo Finance enter a company’s stock symbol in the search field. Once you arrive at the company’s “Summary” page, click on the “Historical Data” link. Enter the required date range (5 Jan 2016 through 3 Feb 2021) and ensure that you have selected “monthly” then click on “Apply”. Click on “Download Data”. Copy and paste information in the “Date” and “Adj. Close” columns into the appropriate columns on the worksheet in the workbook I have provided you (see Format below). When you paste, chose the “123” option. The other data columns are not needed]. Sort these data from “oldest to newest”. Ensure that you provide the name of the company and its stock symbol in the appropriate cells at the top of the worksheet. 3. a. Use your 61 prices to find the average realized rate of rate of return (rs) over 60 months for each stock. Do this by computing the realized return for each month then finding the average of all 60 monthly returns. The return for each month is found by using the equation: (Ending Price – Beginning Price) / Beginning Price. b. Translate the average monthly realized return to an annualized realized return by multiplying the number you arrived at in part a. by 12. 4. a. Find the standard deviation () for the 60 monthly realized returns. Use the standard deviation function to do this. b. Translate this number into an annualized standard deviation by multiplying it by the square root of 12 (use the SQRT function). 5. Compute the coefficient of variation for each stock using average annualized realized returns from 3b. and the annualized ’sfrom 4b. above. 6. Establish a portfolio comprised of four of your stoc

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1. Choose 18 companies traded on the NYSE. 2. Your timeline will begin For each stock, find the mont...
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