Walden University Standard Deviation and Mean Variance Economics Worksheet

User Generated

Z0001

Economics

Walden University

Description

Please look at instrcutions DO stocks TESLA AND APPLE please do not forget to add sandard devation and mean variance and I also need Also add efficient frontier graph!!!

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This exercise is based on monthly returns. Monthly price data can be obtained for securities at a number of online sources. A good source is finance.yahoo.com. (Look for the "Historical Prices" tab once you enter ticker symbol of the firm you choose.) 1. Choose two different stocks and download 10 years' worth of monthly price data, from January 2008 through December 2017 for each one. Make sure that the two stocks you choose have complete data for the entire period. 2. Calculate the annualized standard deviation of the monthly returns and the correlation coefficient of the monthly returns on the two stocks (see below for details on how to compute an annualized standard deviation). 3. Use a spreadsheet to calculate the efficient frontier composed of these two stocks. Show the numerical values for the efficient frontier, and also graph the frontier in Excel. 4. What are the weights of the stocks in the minimum-variance portfolio? Note: you can use the following formulas: Annualized Mean Return =12* Monthly Mean Return Annualized Standard Deviation = Standard Deviation of Monthly Return *SQRT(12)
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Explanation & Answer

Attached. Please let me know if you have any questions or need revisions.

50.00% 50.00%
AT &T
APPLE
AT &T
Portfolio
Adj Close Returns Returns Returns
18.31924
8.27%
9.44%
8.856%
16.73888 -12.88%
-9.06%
-10.969%
18.40652 -17.51%
-1.06%
-9.282%
18.60356
-7.84%
-3.98%
-1.024%
19.37412 12.73% 18.43%
-3.309%
16.35875
5.34%
9.35%
-1.034%
14.96032
-6.24%
-4.87%
0.683%
15.72576 49.16% 14.58%
8.943%
13.72502
5.64%
4.30%
0.703%
13.1597 16.10%
-7.72%
-0.629%
14.26125
8.58%
0.21%
4.246%
14.2313
-5.30% 15.76%
0.378%
12.29384
0.92%
2.08%
-0.012%
12.04388 -15.04%
-5.67%
-1.302%
12.76844 -16.46%
-1.64%
0.615%
12.98125
-7.35%
1.75%
-0.031%
12.75741
-4.65%
-0.20%
0.710%
12.78315 -12.83%
-5.30%
2.198%
13.49847
-2.87%
-1.01%
0.193%
13.63562
-9.25%
-3.55%
0.437%
14.13812
-1.67%
5.22%
-0.062%
13.43671
-5.71%
-6.15%
0.225%
14.31769
-5.13%
-3.89%
0.613%
14.89699
9.72% 10.53%
0.387%
13.47798
-6.14%
0.71%
0.307%
13.38331 -12.93%
-3.99%
0.819%
13.93893
-9.99%
-0.84%
-1.060%
14.0576
1.64%
5.53%
-0.061%
13.32085
2.13%
0.45%
-0.293%
13.26055
-2.22%
-6.75%
0.279%
14.21987
5.82%
-5.68%
-0.219%
15.07681 -14.33%
-5.49%
-0.330%
15.95252
-5.72%
0.28%
0.108%
15.90789
-3.27%
1.16%
-0.256%
15.72568
-3.54%
-5.41%
0.804%
16.62542
-4.94%
6.76%
0.302%
15.57289
-3.93%
-4.42%
0.077%
16.29323
1.35%
-7.29%
0.347%
17.5735
-0.46%
-1.64%
-0.088%
17.8663
0.66%
-2.78%
0.097%
18.37629
3.62%
0.48%
0.014%
18.28895 -14.04%
7.35%
-0.055%
17.03708
1.47%
1.34%
-0.028%
16.81146
0.92%
-0.14%
0.033%

APPLE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

AT&T
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

EXPECTED RETURNS

Date
1/1/2008
2/1/2008
3/1/2008
4/1/2008
5/1/2008
6/1/2008
7/1/2008
8/1/2008
9/1/2008
10/1/2008
11/1/2008
12/1/2008
1/1/2009
2/1/2009
3/1/2009
4/1/2009
5/1/2009
6/1/2009
7/1/2009
8/1/2009
9/1/2009
10/1/2009
11/1/2009
12/1/2009
1/1/2010
2/1/2010
3/1/2010
4/1/2010
5/1/2010
6/1/2010
7/1/2010
8/1/2010
9/1/2010
10/1/2010
11/1/2010
12/1/2010
1/1/2011
2/1/2011
3/1/2011
4/1/2011
5/1/2011
6/1/2011
7/1/2011
8/1/2011

APPLE
Adj Close
4.164077
3.845988
4.414486
5.351221
5.806512
5.150955
4.889776
5.215247
3.49652
3.309788
2.850806
2.62562
2.772667
2.747442
3.233804
3.870906
4.177921
4.381571
5.026361
5.17464
5.701919
5.798821
6.149828
6.482683
5.908337
6.294721
7.229299
8.031907
7.902396
7.737815
7.913781
7.47848
8.728997
9.25904
9.571903
9.922909
10.43849
10.8658
10.7212
10.77104
10.70029
10.32621
12.01233
11.83852

9/1/2011
10/1/2011
11/1/2011
12/1/2011
1/1/2012
2/1/2012
3/1/2012
4/1/2012
5/1/2012
6/1/2012
7/1/2012
8/1/2012
9/1/2012
10/1/2012
11/1/2012
12/1/2012
1/1/2013
2/1/2013
3/1/2013
4/1/2013
5/1/2013
6/1/2013
7/1/2013
8/1/2013
9/1/2013
10/1/2013
11/1/2013
12/1/2013
1/1/2014
2/1/2014
3/1/2014
4/1/2014
5/1/2014
6/1/2014
7/1/2014
8/1/2014
9/1/2014
10/1/2014
11/1/2014
12/1/2014
1/1/2015
2/1/2015
3/1/2015
4/1/2015
5/1/2015
6/1/2015
7/1/2015

11.73054
12.45224
11.75761
12.45901
14.04268
16.68707
18.44395
17.96496
17.7727
17.96558
18.7888
20.46477
20.6101
18.39245
18.08226
16.51652
14.13667
13.69937
13.81854
13.82229
14.03925
12.46043
14.22016
15.31025
15.08016
16.53361
17.58915
17.84932
15.92701
16.74277
17.17906
18.88659
20.25998
20.9367
21.53824
23.09277
22.81141
24.45293
26.92766
25.10016
26.64193
29.21152
28.40678
28.57115
29.7423
28.75468
27.80789

16.83507
17.3014
17.37044
18.12568
17.62818
18.60475
18.99399
20.01577
21.07584
21.99486
23.38881
22.88076
23.54271
21.60059
21.56077
21.29545
21.97771
22.97741
23.4765
23.96919
22.6569
22.92239
22.83821
22.18439
22.17783
23.73854
23.39903
23.36582
22.14302
21.5023
23.61684
24.04109
24.19986
24.12482
24.28174
24.16046
24.35396
24.07753
24.77327
23.51989
23.05076
24.5424
23.18604
24.59921
24.88084
25.58679
25.02492

-5.80%
5.91%
-5.63%
-11.28%
-15.85%
-9.53%
2.67%
1.08%
-1.07%
-4.38%
-8.19%
-0.71%
12.06%
1.72%
9.48%
16.83%
3.19%
-0.86%
-0.03%
-1.55%
12.67%
-12.37%
-7.12%
1.53%
-8.79%
-6.00%
-1.46%
12.07%
-4.87%
-2.54%
-9.04%
-6.78%
-3.23%
-2.79%
-6.73%
1.23%
-6.71%
-9.19%
7.28%
-5.79%
-8.80%
2.83%
-0.58%
-3.94%
3.43%
3.40%
7.57%

-2.70%
-0.40%
-4.17%
2.82%
-5.25%
-2.05%
-5.10%
-5.03%
-4.18%
-5.96%
2.22%
-2.81%
8.99%
0.18%
1.25%
-3.10%
-4.35%
-2.13%
-2.06%
5.79%
-1.16%
0.37%
2.95%
0.03%
-6.57%
1.45%
0.14%
5.52%
2.98%
-8.95%
-1.76%
-0.66%
0.31%
-0.65%
0.50%
-0.79%
1.15%
-2.81%
5.33%
2.04%
-6.08%
5.85%
-5....


Anonymous
Excellent! Definitely coming back for more study materials.

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