Download the daily closing share price of Meta and S&P500 index (Ticker FB and SPY) from Yahoo Finance for the period 19-Feb 2021 to 22-Feb 2022. Using historical data, calculate the expected daily and annual return for both the company and the index. 

1. Calculate the daily and annual standard deviation of the company and the index. 

2. Calculate the beta of the company. Over the past year, which one is a better investment?

3. When is it appropriate to use historical data to forecast expected return? In the case of Meta, do you think it is appropriate to use the last year return to forecast future return?

Answer rating: 100% (QA)

solution 1 Daily return Close Price today Close Price yesterdayClose Price yesterd... View the full answer