1. Choose two different stocks and download 10 year's worth of monthly price data, from January...
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1. Choose two different stocks and download 10 year's worth of monthly price data, from January 2002 through December 2011. for each one. Make sure that the two stocks you choose have complete data for the entire period. 2. Calculate the annualized standard deviation of the monthly returns and the correlation coefficient of the monthly returns on the two stocks (see below for details on how to compute an annualized standard deviation). 3. Use a spreadsheet to calculate the efficient frontier composed of these two stocks. Show the numerical values for the efficient frontier, and also graph the frontier in Excel. 4. What are the weights of the stocks in the minimum -variance portfolio? 1. Choose two different stocks and download 10 year's worth of monthly price data, from January 2002 through December 2011. for each one. Make sure that the two stocks you choose have complete data for the entire period. 2. Calculate the annualized standard deviation of the monthly returns and the correlation coefficient of the monthly returns on the two stocks (see below for details on how to compute an annualized standard deviation). 3. Use a spreadsheet to calculate the efficient frontier composed of these two stocks. Show the numerical values for the efficient frontier, and also graph the frontier in Excel. 4. What are the weights of the stocks in the minimum -variance portfolio?
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Related Book For
Data Modeling and Database Design
ISBN: 978-1285085258
2nd edition
Authors: Narayan S. Umanath, Richard W. Scammel
Posted Date:
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