Use the historical share prices (2020 -2022) given and answer the following questions. Calculate the average daily
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Question:
Use the historical share prices (2020 -2022) given and answer the following questions.
- Calculate the average daily return using historical stock prices (Close Price).
- Using the calculated average daily return, estimate the monthly return.
- Derive suitable graphs to show the volatility of monthly returns, comment on significant observations and critically review the possible reasons behind the return volatility.
- Based on the calculated monthly return estimate, the risk and return (3-year average) of the selected three stocks
- Based on the monthly return estimates, calculate the correlation between these three stocks, critically review correlation values, and explain the importance of correlation in portfolio construction.
- Based on the review of the correlation matrix, create a portfolio with two stocks, calculate the risk and return of the portfolio and explain whether your selected portfolio help to achieve the diversification benefit.
Date | Open | High | Low | Close | Adj Close | Volume |
1/2/2020 | 2.11 | 2.16 | 2.04 | 2.05 | 2.05 | 1076779 |
1/3/2020 | 2.14 | 2.17 | 2.08 | 2.1 | 2.1 | 2932696 |
1/6/2020 | 2.1 | 2.17 | 2.1 | 2.14 | 2.14 | 1101080 |
1/7/2020 | 2.17 | 2.28 | 2.15 | 2.28 | 2.28 | 2145866 |
1/8/2020 | 2.39 | 2.44 | 2.2 | 2.22 | 2.22 | 3814793 |
1/9/2020 | 2.28 | 2.325 | 2.27 | 2.3 | 2.3 | 2156328 |
1/10/2020 | 2.3 | 2.32 | 2.25 | 2.29 | 2.29 | 2273628 |
1/13/2020 | 2.31 | 2.32 | 2.27 | 2.29 | 2.29 | 1018175 |
1/14/2020 | 2.31 | 2.33 | 2.27 | 2.3 | 2.3 | 1380080 |
1/15/2020 | 2.3 | 2.44 | 2.28 | 2.44 | 2.44 | 3787006 |
1/16/2020 | 2.46 | 2.47 | 2.35 | 2.4 | 2.4 | 1824944 |
1/17/2020 | 2.43 | 2.54 | 2.425 | 2.53 | 2.53 | 3059629 |
1/20/2020 | 2.71 | 2.815 | 2.67 | 2.69 | 2.69 | 3785494 |
1/21/2020 | 2.68 | 2.68 | 2.58 | 2.64 | 2.64 | 2583016 |
1/22/2020 | 2.71 | 2.97 | 2.7 | 2.91 | 2.91 | 4981658 |
1/23/2020 | 2.97 | 3.09 | 2.84 | 3.07 | 3.07 | 4544931 |
1/24/2020 | 3.09 | 3.21 | 2.99 | 3.07 | 3.07 | 4864272 |
1/28/2020 | 2.99 | 3.03 | 2.91 | 2.97 | 2.97 | 3727212 |
1/29/2020 | 2.97 | 3.06 | 2.89 | 3 | 3 | 2910081 |
1/30/2020 | 3 | 3.02 | 2.95 | 2.97 | 2.97 | 1183183 |
1/31/2020 | 2.96 | 3.02 | 2.92 | 3 | 3 | 1288050 |
2/3/2020 | 2.9 | 3.02 | 2.81 | 2.96 | 2.96 | 2608247 |
2/4/2020 | 2.99 | 3 | 2.89 | 2.94 | 2.94 | 15512337 |
2/5/2020 | 2.93 | 3 | 2.87 | 2.96 | 2.96 | 1632519 |
2/6/2020 | 2.96 | 3.04 | 2.93 | 2.96 | 2.96 | 1399869 |
2/7/2020 | 3 | 3.01 | 2.88 | 2.92 | 2.92 | 1538133 |
2/10/2020 | 2.92 | 2.92 | 2.83 | 2.89 | 2.89 | 1353899 |
2/11/2020 | 2.9 | 2.95 | 2.84 | 2.88 | 2.88 | 1833730 |
2/12/2020 | 2.88 | 2.94 | 2.85 | 2.9 | 2.9 | 3169157 |
2/13/2020 | 2.97 | 2.97 | 2.86 | 2.87 | 2.87 | 4345478 |
2/14/2020 | 2.89 | 2.89 | 2.81 | 2.84 | 2.84 | 1283431 |
2/17/2020 | 2.82 | 2.84 | 2.7 | 2.72 | 2.72 | 2657625 |
2/18/2020 | 2.75 | 2.75 | 2.65 | 2.7 | 2.7 | 1585247 |
2/19/2020 | 2.7 | 2.8 | 2.7 | 2.78 | 2.78 | 1912733 |
2/20/2020 | 2.85 | 2.88 | 2.73 | 2.74 | 2.74 | 1578168 |
2/21/2020 | 2.79 | 2.83 | 2.73 | 2.75 | 2.75 | 692430 |
2/24/2020 | 2.73 | 2.74 | 2.53 | 2.59 | 2.59 | 3230795 |
2/25/2020 | 2.35 | 2.6 | 2.34 | 2.58 | 2.58 | 2547754 |
2/26/2020 | 2.5 | 2.55 | 2.41 | 2.42 | 2.42 | 2953685 |
2/27/2020 | 2.36 | 2.52 | 2.36 | 2.44 | 2.44 | 1881074 |
2/28/2020 | 2.38 | 2.42 | 2.16 | 2.24 | 2.24 | 5147576 |
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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