Mr. Morris had $100,000 in his account. Using this fund, he made a portfolio of two NYSE
Question:
Mr. Morris had $100,000 in his account. Using this fund, he made a portfolio of two NYSE listed stocks – Johnson and Johnson (J&J) and IBM on 01 Jan 2019 in the ratio of 60:40, i.e. 60% funds in J&J & 40% funds in IBM. The daily stock data of both stocks can be found on market websites such as finance.yahoo.com. Download daily data for 1 year from 1 Jan 2019 – 1st Jan 2020. Using the stock data of the two stocks, you are required to explain the below concepts and then compute for the given stocks: a. Annual return of both J&J and IBM. |
b. Annualized standard deviation of returns of both J&J and IBM
|
Essentials of Investments
ISBN: 978-0078034695
9th edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus