Question
In: Finance
Obtain monthly adjusted close prices of S&P500 Index (symbol: ^GSPC) and Microsoft (symbol: MSFT) during December...
Obtain monthly adjusted close prices of S&P500 Index (symbol: ^GSPC) and Microsoft (symbol: MSFT) during December 2006 – December 2019 from Yahoo Finance. Then, using Excel, compute monthly returns during January 2007 – December 2019. From these returns, compute and report beta of Microsoft using the formula we learned in class. Suppose today’s Treasury bill rate is 2% per annum. Historically, market risk premium is estimated to be 8% per annum. What is today’s expected return per annum of Microsoft, according to CAPM?
Guidelines:
1. Use the VAR.P( : ) command to compute variance.
2. Use the COVARIANCE.P( : , : ) command to compute covariance.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Obtain monthly close prices of Microsoft (symbol: MSFT) adjusted for stock splits and dividends during December...
Obtain monthly close prices of Microsoft (symbol: MSFT) adjusted
for stock splits and dividends during December 1989 – December 2019
from Yahoo Finance (finance.yahoo.com). Using Excel, compute
monthly returns during January 1990 – December 2019. From these
returns, compute arithmetic and geometric return averages over the
entire period. Report your answers and confirm that arithmetic
average is greater than geometric average.
Guideline:
1. Yahoo Finance allows you to download the data in a
spreadsheet.
2. At Yahoo Finance, go to...
Obtain monthly adjusted close prices of Microsoft (symbol: MSFT) and Exxon Mobil Corporation (symbol: XOM) during...
Obtain monthly adjusted close prices of Microsoft (symbol: MSFT)
and Exxon Mobil Corporation (symbol: XOM) during December 1989 –
December 2019 from Yahoo Finance. Using Excel, compute monthly
returns of each company during January 1990 – December 2019. Also,
compute and report the arithmetic average and the standard
deviation of each company’s returns. Compute and report the
correlation coefficient between these two stock returns. Next, form
a portfolio that combines Microsoft and Exxon Mobil Corporation
with equal weight. Compute monthly...
Find below monthly levels of the S&P 500 Index and monthly Microsoft stock prices for the...
Find below monthly levels of
the S&P 500 Index and monthly Microsoft stock prices for the
last five years. Any dividends paid are acoounted for in the
closing monthly indices and prices. Follow the instructions below
to make estimations and to answer all questions.
Date
Adj Close S&P 500 Index
Adj Close MSFT Stock Price
Monthly Return S&P 500
Monthly Return MSFT
4/1/13
1597.57
29.09
5/1/13
1630.74
30.67
6/1/13
1606.28
30.56
7/1/13
1685.73
28.17
8/1/13
1632.97
29.56
9/1/13
1681.55
29.66...
The following table contains closing monthly stock prices for Oracle Corporation (ORCL), Microsoft Corporation (MSFT), and...
The following table contains closing monthly stock
prices for Oracle Corporation (ORCL), Microsoft Corporation (MSFT),
and NVidia (NVDA) for the first half of 2017.
Ticker
6/30/2017
5/31/2017
4/30/2017
3/31/2017
2/28/2017
1/31/2017
ORCL
50.14
45.39
44.96
44.61
42.59
40.11
MSFT
68.93
69.84
68.46
65.86
63.98
64.65
NVDA
144.56
144.35
104.3
108.93
101.48
109.18
Create a formula to calculate the monthly rate of return during
the first semester of 2017 and for each company. Format the results
as percentages with two decimal...
1. The following table contains closing monthly stock prices for Oracle Corporation (ORCL), Microsoft Corporation (MSFT), and...
1. The following table contains closing
monthly stock prices for Oracle Corporation (ORCL), Microsoft
Corporation (MSFT), and NVidia (NVDA) for the first half of
2017.
Ticker
6/30/2017
5/31/2017
4/30/2017
3/31/2017
2/28/2017
1/31/2017
ORCL
50.14
45.39
44.96
44.61
42.59
40.11
MSFT
68.93
69.84
68.46
65.86
63.98
64.65
NVDA
144.56
144.35
104.3
108.93
101.48
109.18
a) Enter the data, as shown, into a
worksheet and format the table as shown.
b) Create a formula to calculate the monthly
rate of return during the first semester...
A financial analyst tested the performance of Portfolio A against the S&P500 Index during 150 months...
A financial analyst tested the performance of Portfolio A
against the S&P500 Index during 150 months of transactions. The
figure below shows part of the output from a regression between the
two sets of returns.
ANOVA
df
SS
MS
Regression
1
0.080
0.080
Residual
120
0.107
0.000
Total
121
0.187
Coefficients
Standard Error
Intercept
-0.001
0.003
S&P500
0.346
0.037
What is the estimated equation that corresponds to these
results?Find the R2 and provide a brief explanation about the
meaning of...
The annual data on stock prices and dividends for Microsoft Corporation(MSFT) is as follows: Year Price...
The annual data on stock prices and dividends for Microsoft
Corporation(MSFT) is as follows:
Year Price (Beginning of the Year) Price (End of the Year)
Dividends (End of the Year )
2005 26.28 28.15 0.29
2006 28.15 30.86 0.33
2007 30.86 32.60 0.37
2008 32.60 17.10 0.41
2009 17.10 28.18 0.46
2010 28.18 27.73 0.55
2011 27.73 29.53 0.68
2012 29.53 27.45 0.83
2013 27.45 37.84 0.97
2014 37.84 46.45 1.15
What will be the IRR if the stock is...
Part 1 : Analyzing "stock market condition". (Note: Collect S&P500 index prices using Yahoo! Finance.) 1)...
Part 1 : Analyzing "stock market condition". (Note: Collect
S&P500 index prices using Yahoo! Finance.)
1) Download S&P500 daily index prices from Dec 31, 2019 to
Apr 30, 2020.
2) Calculate daily S&P500 index returns and daily cumulative
returns over the sample period.
3) Plot the cumulative returns and analyze the
plot.
You are an options trader with an investment bank. It appears that the S&P500 index will...
You are an options trader with an investment bank. It appears
that the S&P500 index will trade between 2700 and 2500 for the
next few months. How can you use options to create a profitable
investment opportunity?
1 )Please explain in detail.
2) Show the payoff and profit in a graph.
You are an options trader with an investment bank. It appears that the S&P500 index will...
You are an options trader with an investment bank. It appears
that the S&P500 index will trade between 2700 and 2500 for the
next few months. How can you use options to create a profitable
investment opportunity? Show the payoff and profit in a graph.
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