Refer to the monthly stock price of OO C0mpany, MM C0mpany and VV C0mpany for the last 3 years. For each stock, Calculate:

1. a) Average yearly rate of return
2. b) Standard deviation
3. c) Beta

                                                                                                                                                       

Question 

Assume a portfolio of the two selected stocks with OO C0mpany (60%) and MM C0mpany (40%), recommend your Finding based on:

 

       a) Portfolio return 

        b)Portfolio risk.

 

Transcribed Image Text:

01/01/2019 01/02/2019 01/03/2019 01/04/2019 01/05/2019 01/06/2019 01/07/2019 01/08/2019 01/09/2019 01/10/2019 01/11/2019 01/12/2019 01/01/2020 01/02/2020 01/03/2020 01/04/2020 01/05/2020 01/06/2020 01/07/2020 01/08/2020 01/09/2020 01/10/2020 01/11/2020 01/12/2020 01/01/2021 01/02/2021 01/03/2021 01/04/2021 01/05/2021 01/06/2021 01/07/2021 01/08/2021 01/09/2021 01/10/2021 01/11/2021 01/12/2021 00 Company 1.365109 1.428814 1.428814 1.58942 1.414859 1.469983 1.525515 1.507024 1.68269 1.832763 1.693212 1.581572 00 Company 1.648673 1.320811 1.161564 1.342271 1.40844 1.597492 2.015742 2.139349 2.167874 2.42745 2.561246 2.637701 00 Company 3.275867 3.468565 3.160248 3.350549 3.107756 3.07862 3.252075 3.359501 3.603651 3.806243 4.120972 3.934102 MM Company 0.94135 1.000184 1.049213 1.117853 1.019795 1.049213 1.029601 0.887418 0.936447 0.921738 0.877612 0.921738 MM Company 0.833487 0.735429 0.333395 0.480481 0.549121 0.603052 0.588344 0.583441 0.495189 0.451063 0.588344 0.568732 MM Company 0.524606 0.671692 0.627566 0.617331 0.612393 0.676595 0.637086 0.656841 0.691411 0.888957 0.740798 0.805 VV Company 1.775 1.815 1.75 1.77 1.675 1.74 1.73 1.68 1.69 1.68 1.7 1.69 VV Company 1.69 1.62 1.48 1.445 1.5 1.63 1.66 1.62 1.66 1.67 1.68 1.71 VV Company 1.66 1.64 1.69 1.69 1.65 1.61 1.58 1.65 1.62 1.65 1.6 1.59 01/01/2019 01/02/2019 01/03/2019 01/04/2019 01/05/2019 01/06/2019 01/07/2019 01/08/2019 01/09/2019 01/10/2019 01/11/2019 01/12/2019 01/01/2020 01/02/2020 01/03/2020 01/04/2020 01/05/2020 01/06/2020 01/07/2020 01/08/2020 01/09/2020 01/10/2020 01/11/2020 01/12/2020 01/01/2021 01/02/2021 01/03/2021 01/04/2021 01/05/2021 01/06/2021 01/07/2021 01/08/2021 01/09/2021 01/10/2021 01/11/2021 01/12/2021 00 Company 1.365109 1.428814 1.428814 1.58942 1.414859 1.469983 1.525515 1.507024 1.68269 1.832763 1.693212 1.581572 00 Company 1.648673 1.320811 1.161564 1.342271 1.40844 1.597492 2.015742 2.139349 2.167874 2.42745 2.561246 2.637701 00 Company 3.275867 3.468565 3.160248 3.350549 3.107756 3.07862 3.252075 3.359501 3.603651 3.806243 4.120972 3.934102 MM Company 0.94135 1.000184 1.049213 1.117853 1.019795 1.049213 1.029601 0.887418 0.936447 0.921738 0.877612 0.921738 MM Company 0.833487 0.735429 0.333395 0.480481 0.549121 0.603052 0.588344 0.583441 0.495189 0.451063 0.588344 0.568732 MM Company 0.524606 0.671692 0.627566 0.617331 0.612393 0.676595 0.637086 0.656841 0.691411 0.888957 0.740798 0.805 VV Company 1.775 1.815 1.75 1.77 1.675 1.74 1.73 1.68 1.69 1.68 1.7 1.69 VV Company 1.69 1.62 1.48 1.445 1.5 1.63 1.66 1.62 1.66 1.67 1.68 1.71 VV Company 1.66 1.64 1.69 1.69 1.65 1.61 1.58 1.65 1.62 1.65 1.6 1.59

Answer rating: 100% (QA)

Answer To solve this problem we need to calculate the average yearly rate of return standard deviati... View the full answer