Risk and Return --- Individual stock and portfolios

Excel Template

Steps:

1.      Visit finance.yahoo.com

2.      Search for WalMart, Amazon, Apple, and S&P500

3.      Click on historical data

4.      Time period: 5/1/2014 – 5/1/2019

Show: Historical price

Frequency: Monthly

5.      Click download data

6.      Open in Excel the downloaded file

7.      Delete all columns except “date” and “adj close”

8.      Repeat the above for Amazon, Apple, and S&P500

9.      Combine the three companies into one excel file.

10.  Calculate average return and risk (standard deviation), correlation matrix, portfolio returns and portfolio standard deviation,

11. Calculate Beta, stock return based on CAPM, and draw SML