How do the returns and variance compare with the s-p 500

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Reference no: EM131993813

If I have stata and an excel file, how would I calculate these problems with a porfolio of stocks where one stock is 50% and the other two are 25%. Could you give me step by step how to go about solving that.

(a) Using the end date 12/31/15 and the three stocks in your portfolio, calculate the annualized return for the last 10 years, 5 years, and 1 year. For example, to calculate the 10-year return, assume you bought the stock on 12/31/05 and sold it on 12/31/15. What is the annualized return? Make the calculations for each stock and for the entire portfolio. Note: Use the adjusted closing price. This price is adjusted for both dividends and splits.

(b) What was the volatility (variance) of the daily return for those same periods?

Reference no: EM131993813

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