1. From Yahoo! Finance, download historical monthly data, in US dollars, for the S&P500 stock market...

 

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1. From Yahoo! Finance, download historical monthly data, in US dollars, for the S&P500 stock market index (Yahoo! Finance symbol ^GSPC), as well as for two stocks that you choose yourself, "Stock A" and "Stock B". If you do not know what stocks to choose, you can use Equity Screener: https://finance.yahoo.com/screener/new. The two stocks must be a. current constituents of the S&P500 index b. from two different sectors of activity (GICS sector in the list above) c. different from stocks that other groups choose 2. Calculate the most recent 1-, 3-, and 5-year holding period returns, as well as the corresponding arithmetic and geometric monthly average returns for: a. S&P500 b. Stock A c. Stock B d. A 50/50 monthly rebalanced portfolio (call this portfolio "P1"): you invest 50% in Stock A and 50% in Stock B, and keep rebalancing to 50% weights at the start of every month e. A 50/50 buy-and-hold portfolio ("P2"): you invest 50% in Stock A and 50% in Stock B and do not rebalance f. A momentum portfolio ("P3"): at the start of every month you put 100% of your money into whichever stock (i.e. Stock A or Stock B) has higher stock return during the previous month. g. A perfect foresight portfolio ("P4"): at the start of every month you put 100% of your money into whichever stock (i.e. Stock A or Stock B) has higher return during that month. h. P5: P3, assuming that the cost of buying or selling a stock is 10 basis points (0.10%) i. P6: P4, assuming that the cost of buying or selling a stock is 10 basis points (0.10%) 1. From Yahoo! Finance, download historical monthly data, in US dollars, for the S&P500 stock market index (Yahoo! Finance symbol ^GSPC), as well as for two stocks that you choose yourself, "Stock A" and "Stock B". If you do not know what stocks to choose, you can use Equity Screener: https://finance.yahoo.com/screener/new. The two stocks must be a. current constituents of the S&P500 index b. from two different sectors of activity (GICS sector in the list above) c. different from stocks that other groups choose 2. Calculate the most recent 1-, 3-, and 5-year holding period returns, as well as the corresponding arithmetic and geometric monthly average returns for: a. S&P500 b. Stock A c. Stock B d. A 50/50 monthly rebalanced portfolio (call this portfolio "P1"): you invest 50% in Stock A and 50% in Stock B, and keep rebalancing to 50% weights at the start of every month e. A 50/50 buy-and-hold portfolio ("P2"): you invest 50% in Stock A and 50% in Stock B and do not rebalance f. A momentum portfolio ("P3"): at the start of every month you put 100% of your money into whichever stock (i.e. Stock A or Stock B) has higher stock return during the previous month. g. A perfect foresight portfolio ("P4"): at the start of every month you put 100% of your money into whichever stock (i.e. Stock A or Stock B) has higher return during that month. h. P5: P3, assuming that the cost of buying or selling a stock is 10 basis points (0.10%) i. P6: P4, assuming that the cost of buying or selling a stock is 10 basis points (0.10%)

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I can provide guidance on how to approach this task but unfortunately I cant directly download data from Yahoo Finance or execute code to perform calc... View the full answer