5 Year Historical Daily Prices on Yahoo Finance WorksheetThis projects purpose is to form a portfolio with 2 risky assets (2 common stocks) and 1 risk-free asset (1-year Treasury Bills) and calculate the optimal portfolio weights among these assets. Pick 2 stocks you are interested in investing (They can be any stock as long as they are common stocks listed on NYSE/Nasdaq/Amex). For each of the stock do the following: (1) Obtain its 5-year historical daily prices (1/1/2015 – 12/31-2019) on Yahoo finance and calculate its daily holding period returns. (2) Generate a summary statistics report on its holding period returns. (3) Create a Histogram chart on its holding period returns. (4) Estimate its annualized volatility using all the holding period returns from (1). (5) Use the S&P 500 holding period returns during the same period as market return run a regression to estimate the beta of this stock. Y: stock return minus risk-free rate. X: market return minus risk-free rate. You can use 1.5% as risk-free rate. (6) Once beta is estimated calculate the expected return of this stock using CAPM. According to CAPM Expected return = Rf + beta*(Rm-Rf). Note that Rf should be an annual return Rm should also be an annualized return which can be calculated using average of daily S&P 500 returns in part (5) multiplied by 252. (7) Use the expected return and annualized volatility you estimated in part (4) and (6) simulate daily stock prices for the next 252 days assuming stock prices follow Geometric Brownian Motion. (8) Form a portfolio with both stocks and risk-free asset. Estimate the correlation coefficients between two stocks. Use this formula =CORREL(HPRs of stock1 HPRs of stock 2) (9) Set a target portfolio return use Solver to estimate the optimal weights for all assets in your portfolio. (Tip: If your solver is unable to give you a solution consider changing your target portfolio return to a more realistic number for example if both your stocks have expected returns around 10% based on CAPM setting a target portfolio return of 20% will probably not work.) PreviousNext

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your paper today and save 30% with the discount code HAPPY

X
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 323 412 5597

Feel free to ask questions, clarifications, or discounts available when placing an order.