Question: Question 1 Adjusted Closing price for Apple Inc is provided in the following table. Date Adj Close Date Adj Close Date Adj Close 01/01/2019 3612.285
Question 1
Adjusted Closing price for Apple Inc is provided in the following table.
| Date | Adj Close | Date | Adj Close | Date | Adj Close |
| 01/01/2019 | 3612.285 | 01/01/2020 | 4415.684 | 01/01/2021 | 5200.593 |
| 01/02/2019 | 3999.87 | 01/02/2020 | 4314.927 | 01/02/2021 | 5771.229 |
| 01/03/2019 | 4371.301 | 01/03/2020 | 4549.663 | 01/03/2021 | 5905.448 |
| 01/04/2019 | 4126.596 | 01/04/2020 | 4742.503 | 01/04/2021 | 5511.751 |
| 01/05/2019 | 4657.382 | 01/05/2020 | 5079.86 | 01/05/2021 | 5614.748 |
| 01/06/2019 | 4569.288 | 01/06/2020 | 4881.908 | 01/06/2021 | 6197.111 |
| 01/07/2019 | 4065.643 | 01/07/2020 | 5450.673 | 01/07/2021 | 6796.8 |
| 01/08/2019 | 4040.728 | 01/08/2020 | 5385.618 | 01/08/2021 | 7044.184 |
| 01/09/2019 | 4477.583 | 01/09/2020 | 5605.773 | 01/09/2021 | 7060.597 |
| 01/10/2019 | 4547.165 | 01/10/2020 | 5631.156 | 01/10/2021 | 7293.973 |
| 01/11/2019 | 4316.734 | 01/11/2020 | 5750.548 | 01/11/2021 | 7252.16 |
| 01/12/2019 | 4627.59 | 01/12/2020 | 5521.165 | 01/12/2021 | 7397.047 |
required
- Calculate the Holding Period Returns for 2019, 2020 and 2021.
- Calculate the Annual Standard Deviations for 2019, 2020 and 2021.
- Assuming an annual Risk-Free Rate of 1.5%, what was the Risk Premium for each of the three years?
- What was the Sharpe Ratio in each of the three years?
5. Calculate and explain the results of your allocated companys Capital Allocation Line over the full 3-year period.
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