Returns, Risk and Correlations

FIND A SOLUTION AT Academic Writers Bay

Part 1  (30 points: 20 excel + 10 report)

Returns, Risk and Correlations 

Go and obtain the daily prices for MSFT, AAPL, TGT, and WMT over the year MM/DD/2018 to MM/DD/2019, where MM/DD corresponds to your birthday. Compute daily return for each stocks for the entire sle period. Merge the returns for these firms into a single excel workbook with the returns for each company properly aligned. 

  1. Using the Excel functions for Average and Standard Deviation, calculate the average return and standard deviation for each of the firms.  (10 points)
  2. Using the Correlation function construct the correlation matrix for the firms using the daily returns for the entire period. (5 points)
  3. Which pair of firms has the highest correlation coefficient? The lowest? (2 points) 
  4. If you have to choose two stocks for your portfolio, which pair would give you the greatest benefit with regard to diversification? Explain. (3 points)

Part 2  (50 points: 40 excel + 10 report)


Minimum Variance Portfolios 

Monthly price data can be obtained for securities at a number of online sources. A good source is (Look for the “Historical Prices” tab once you enter ticker symbol of the firm you choose.) 

  1. Download 10 year’s worth of monthly price data for two different stocks.            (2 points) 
  2. Calculate the annualized mean return and annualized standard deviation of the monthly returns and the correlation coefficient of the returns on the two stocks. (15 points) 
  3. Use a spreadsheet to calculate the investment opportunity set composed of these two stocks. Plot the investment opportunity set. (15 points)
  4. What are the weights of each of these stocks in the minimum-variance portfolio? (4 points)
  5. Compute the expected return and standard deviation of the minimum-variance portfolio. (4 points)


Standard Deviation of Annual Return = Standard Deviation of Monthly Return


Part 3    (20 points: 15 excel + 5 report)

  Choose any stock that you want to analyze.  Use data from Yahoo Finance to calculate the beta of the stock. Start by downloading the monthly adjusted closing prices of the stock and the S#038;P 500 (^GSPC) in the Historical Prices section. Copy the data into Excel and calculate the monthly rates of return (based on closing prices) for each series. Using the entire period for which data are available for both the stock and S#038;P 500, estimate a regression with stock’s excess return as the dependent (Y) variable and the S#038;P 500 excess return as the independent (X) variable. To compute excess return assume risk free rate to be 3%. Verify the  and  from the regression with and  computed using the analytical formula given in Exle 6.3 in BKM. Finally, compare your results to the beta listed in Yahoo Finance Stock Report. Do any of your results match the Yahoo Finance Report beta? What might explain the differences?

   Welcome to one of the bestassignmenthelpcompanies  online .

·         Do you want to order for a customized assignment help task?

·          Click on the order now button 

·         Set up your topic, Fix the number of pages, Fix your Order instructions 

·         Set up your deadline, upload the necessary files required to complete the task, Complete the payment.

 We delivery high quality and non plagiarized tasks within the stipulated time given 


Order from Academic Writers Bay
Best Custom Essay Writing Services


Why Choose Us?

  • non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How It Works

  • Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT ; SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.


AcademicWritersBay.comnbsp;is an easy-to-use and reliable service that is ready to assist you with your papers 24/7/ 365days a year. 99% of our customers are happy with their papers. Our team is efficient and will always tackle your essay needs comprehensively assuring you of excellent results. Feel free to ask them anything concerning your essay demands or Order. is a private company that offers academic support and assistance to students at all levels. Our mission is to provide proficient andnbsp;high quality academic servicesnbsp;to our highly esteemed clients. is equipped with competent andnbsp;proficient writersnbsp;to tackle all types of your academic needs, and provide you with excellent results. Most of our writers are holders ofnbsp;master's degreesnbsp;ornbsp;PhDs, which is an surety of excellent results to our clients. We provide assistance to students all over the world.
We provide high quality term papers, research papers, essays, proposals, theses and many others. Atnbsp;, you can be sure ofnbsp;excellent gradesnbsp;in your assignments and final exams.

error: Content is protected !!