User Account

All Pages

Ccalculate your portfolios mean monthly return

Assignment Help Financial Management
Reference no: EM132293543

Assignment

1. Select the stocks of three publicly traded companies from different industries. State the criteria for selecting those securities.

2. Retrieve monthly data on adjusted closing prices of your securities from Yahoo Finance for the past 10 years and calculate the monthly rate of return of the stocks for every month.

3. Calculate the mean, variance, and standard deviation of the stocks' monthly returns.

4. Calculate the correlation coefficient between every possible pair of stocks' returns.

5. Decide what percentage of your money (weights) you want to invest in each stock and state the criteria you used to select those weights.

6. Now calculate your portfolio's mean monthly return, variance, and standard deviation.

7. Assuming your portfolio return follows a normal distribution, calculate the chance that your portfolio loses 10% of its value during any month?

8. Assuming you have invested $100,000 in your portfolio, what is value at risk (VaR) of your portfolio at any particular month at 99% confidence level?

9. Now randomly change your portfolio's weights 100 times (note total weights should always be 100%), for each weight combination calculate the mean and standard deviation of your portfolio, and then draw the efficient frontier.

10. For each item mentioned above explain your rationale and cite peer-reviewed and/or seminal sources.

Reference no: EM132293543

Questions Cloud

What are some of the means by which borrowers raise : What is the unit of measure by which borrowers calculate the cost of borrowing and by which lenders calculate their rate of return on money loaned?
Importance of knowing non-verbal communication cues : Describe the importance of knowing non-verbal communication cues.
Potential for contributing new ideas : Does the mentor also "develop knowledge" and the potential for contributing "new ideas?" Does the mentor develop leadership skills
Implementation of an e-commerce technology in recent years : In what ways has that company, large or small, benefited greatly through the competitive advantage that was gained
Ccalculate your portfolios mean monthly return : Assuming you have invested $100,000 in your portfolio, what is value at risk (VaR) of your portfolio at any particular month at 99% confidence level?
Envision as crucial to the development of technology : Formal Paper 4 should concentrate on one or more issues in ethics that you envision as crucial to the development of technology,
Who gets to define the leaders in the group : Leaders command significant power to enable team performance. Using one or more of the teams that you identified.
Deliverables in the stage gate process refers to : Which is not one of the "rules" of IDEOS' brainstorming process? Deliverables in the Stage Gate process refers to?
Calculate the npv and irr with and without mitigation : Calculate the NPV and IRR with and without mitigation. How should the environmental effects be dealt with when this project is evaluated?

Reviews

Write a Review

Financial Management Questions & Answers

  Sensitivity of your base-case npv to changes in fixed costs

You are considering a new product launch. The project will cost $1,232,500, have a five-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 310 units per year; price per unit will be $19,300, variable c..

  About the current share price

Estes Park Corp. pays a constant $8.15 dividend on its stock. The company will maintain this dividend for the next 12 years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share pr..

  What is the project irr if forecast is correct

Upon seeing such a high IRR, the mayor of Detroit seeks a second opinion and hires Dan as a consultant. Dan is an aquarium expert and believes that Detroit's aquarium will only generate $1 million in cash flows for the first three years in operation,..

  President trump signed the tax cuts and jobs act

In December 2017, President Trump signed the Tax Cuts and Jobs Act. What is the likely impact of this tax cut on corporate capital structure?

  What is capital structure of company based on market values

What is the capital structure of this company based on market values?

  What is return shareholders are expecting

At the current stock price of $8.36, what is the return shareholders are expecting?

  Calculate the price of call option expiring in two periods

Calculate the price of a call option expiring in two periods with an exercise price of $40.

  Define the interest rate after-tax and calculation for it

Analyze the relationship between the coupon interest rate of a bond and its par value. Define the interest rate after-tax and the calculation for it.

  Relationship between the cost of debt and levered equity

Explain the probable forms of the cost-of-debt function and the reasons for a specific relationship between the cost of debt and levered equity.

  Which of the four workers do you expect to work

Draw the budget constraint facing any worker under the original program. -  Draw the budget constraint facing any worker under the proposed new program.

  What is company total market value of debt

Shanken Corp. issued a bond with a maturity of 15 years and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 95 percent of its face value. The book value of the debt issue is $60 million. What is the company’s total mar..

  Considering new three-year expansion project

Sextet Corporation is considering a new three-year expansion project that requires an initial fixed asset investment of $2.94 million.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd