a.  Find the realized rate of returns of these four assets for each month. 

b. Compute the average returns, variances, and standard-deviations of these assets over given ten months. 

c. Based on your findings in (b), which asset has the highest mean return? The largest volatility/risk? 

d. Suppose you invested $1000 each in these assets at the beginning (i.e., 11/1/11) and hold it until the end (8/1/12). What would be the dollar value of your investments as of 8/1/12 in these four assets? 

e. Assume now that these four assets each pay $4, $3, $6, and $2 monthly dividends, respectively. If you are selling these assets at the end on 8/1/12 at a price given in the last raw, then what would be the respective HPR of these assets? 

f. Using the ten-month average returns that you find in (b) and assuming that you want to construct an equally-weighted portfolio of these four assets (i.e., N=4), compute the expected rate of return, variance, and standard deviation of your portfolio

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1. [24 Points] Consider the historical/actual price data for the following four assets given in the accompanying table. Do not use excel to find the values requested in question (a) (f). Date 11/1/11 12/1/11 1/1/12 2/1/12 3/1/12 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 GOOGL 300 323 290 309 321 303 291 290 317 343 STOCK PRICES MSFT 21 21 24 26 26 26 24 25 24 25 ATT 17 18 17 18 18 19 20 21 23 22 AAPL 12 12 14 17 18 18 18 18 19 20 1. [24 Points] Consider the historical/actual price data for the following four assets given in the accompanying table. Do not use excel to find the values requested in question (a) (f). Date 11/1/11 12/1/11 1/1/12 2/1/12 3/1/12 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 GOOGL 300 323 290 309 321 303 291 290 317 343 STOCK PRICES MSFT 21 21 24 26 26 26 24 25 24 25 ATT 17 18 17 18 18 19 20 21 23 22 AAPL 12 12 14 17 18 18 18 18 19 20

Answer rating: 100% (QA)

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