STAT 600 Statistics and Quantitative Analysis
PROJECT: Stock return estimation
The project must be done by 6-15 a.m. October, 16th. You should submit your projects before the class begins. This is a group project. Read the course outline for general guidelines. Good luck! The project is closely related to Lectures 1-5 of the class.
Today is September 15, 2013 and you have just started your new job with a financial planning firm. In addition to studying for all your license exams, you have been asked to review a portion of a client’s stock portfolio to determine the risk/return profiles of 12 stocks in the portfolio. Unfortunately, your small firm cannot afford the expensive databases that would provide all this information with a few simple keystrokes, but that’s why they hired you. Specifically, you have been asked to determine the monthly average returns and standard deviations for the 12 stocks for the past five years.
The stocks (with their symbols in parentheses) are:
Apple Computer (AAPL) Hershey (HSY) Archer Daniels Midland (ADM) Motorola (MOT) Boeing (BA) Procter and Gamble (PG) Citigroup (C) Sirius XM radio (SIRI) Caterpilar (CAT) Wal-Mart (WMT) Deere&Co. (DE) Yahoo! (YHOO)
1. Collect price information for each stock from Yahoo!Finance (finance.yahoo.com) as follows: a. Enter the stock symbol. On the page for that stock, click “Historical Prices” on the left side of the page. b. Enter the “start date” as June 4, 2008 and the end date as June 4, 2013 to cover the five-year period. Make sure you click “monthly” next to the date. c. After hitting “Get prices”, scroll to the bottom of the first page and click “Download to Spreadsheet”. If you are...
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