Question: For this project, use monthly historical data from 2 0 0 0 to end the most recent calendar year 1 . Analyze 5 to 1
For this project, use monthly historical data from to end the most recent calendar year Analyze to individual stocks; you can pick any stock you want to analyze. Then compose a portfolio based on any combination of the stocks, analyze the portfolio. Specific tasks and questions to be answered through the project include: Explore and describe the dataset eg descriptive statistics, simple profiling Compare the cumulative performance of the stocks; use visualization effectively Compare the alphas and betas of the stocks as well as your portfolio Are the alphas different from at significance level Hypothesis testing for beta is optional; see section for information if you are interested How do the parameters change over time Compute the average Sharpe ratio of the recent five years for all the stocks you selected, your portfolio, and S&P Draw conclusions from your analysis Word of caution: the analysis is based on historical data, and past performance is no guarantee of future results! Additionally, CAPM is a very simple model; there are improved models that can better explain expected returns. Although the examples in this documents use the period until you should use the period until the end of the most recent calendar year. Submission If you use Jupyter Notebook, use markdown to effectively document your code and output. Submit the ipynb file and the corresponding printout as a PDF file. If you do not use Jupyter Notebook: submit a report and your source code files
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