PLEASE USE THE FOLLOWING TO DATASET TO ANSWER Assume the risk free rate is 0.29%

Question

PLEASE USE THE FOLLOWING TO DATASET TO ANSWER

Assume the risk free rate is 0.29% and use simple returns to answer the following questions

Date

Closing Stock Price of Walmart

Dividend Paid per Walmart Stock during the year

Closing Stock Price of Target

Dividend Paid per target Stock during the year

S&P 500 Index Value

31-Dec-01

$    53.12

$ 0.24

$ 32.25

$0.21

1320.28

31-Dec-02

$    57.54

$ 0.28

$ 41.05

$0.22

1148.08

31-Dec-03

$    50.50

$ 0.30

$ 30.00

$ 0.24

879.82

31-Dec-04

$    53.05

$ 0.36

$ 38.40

$0.26

1111.92

31-Dec-05

$    52.82

$ 0.52

$ 51.93

$0.30

1211.92

31-Dec-06

$   46.79

$ 0.60

$ 54.97

$0.36

1248.29

31-Dec-07

$    46.18

$ 0.67

$ 57.05

$0.44

1418.3

31-Dec-08

$    47.52

$ 0.88

$ 50.00

$ 0.52

1468.36

31-Dec-09

$   56.06

$ 0.95

$ 34.52

$ 0.60

903.25

31-Dec-10

$    53.45

$ 1.09

$ 48.36

$ 0.66

1115.1

31-Dec-11

$    53.93

$ 1.21

$ 60.13

$0.84

1257.64

31-Dec-12

$   59.75

$ 1.46

$ 51.22

$1.10

1257.6

31-Dec-13

$    68.23

$ 1.59

$ 59.16

$ 1.32

1426.19

31-Dec-14

$    78.69

$ 1.88

$ 63.27

$ 1.58

1848.36

31-Dec-15

$    86.79

$ 1.92

$ 75.70

$ 1.90

2080.35

Question: What is coefficient of variance of each stock?

Question:

What is Sharpe ratio of each stock?

Walmart: 0.39 and Target: 0.37

Question:

What is beta for each stock using simple return (not excess returns)?

Question:

Assuming that 60% of total money is invested on Walmart’s stock and 40% on Target’s stock, what is portfolio mean?

Assuming that 60% of total money is invested on Walmart’s stock and 40% on Target’s stock, what is portfolio variance?

please help with whatever Q's you can! thanx

Date

Closing Stock Price of Walmart

Dividend Paid per Walmart Stock during the year

Closing Stock Price of Target

Dividend Paid per target Stock during the year

S&P 500 Index Value

31-Dec-01

$    53.12

$ 0.24

$ 32.25

$0.21

1320.28

31-Dec-02

$    57.54

$ 0.28

$ 41.05

$0.22

1148.08

31-Dec-03

$    50.50

$ 0.30

$ 30.00

$ 0.24

879.82

31-Dec-04

$    53.05

$ 0.36

$ 38.40

$0.26

1111.92

31-Dec-05

$    52.82

$ 0.52

$ 51.93

$0.30

1211.92

31-Dec-06

$   46.79

$ 0.60

$ 54.97

$0.36

1248.29

31-Dec-07

$    46.18

$ 0.67

$ 57.05

$0.44

1418.3

31-Dec-08

$    47.52

$ 0.88

$ 50.00

$ 0.52

1468.36

31-Dec-09

$   56.06

$ 0.95

$ 34.52

$ 0.60

903.25

31-Dec-10

$    53.45

$ 1.09

$ 48.36

$ 0.66

1115.1

31-Dec-11

$    53.93

$ 1.21

$ 60.13

$0.84

1257.64

31-Dec-12

$   59.75

$ 1.46

$ 51.22

$1.10

1257.6

31-Dec-13

$    68.23

$ 1.59

$ 59.16

$ 1.32

1426.19

31-Dec-14

$    78.69

$ 1.88

$ 63.27

$ 1.58

1848.36

31-Dec-15

$    86.79

$ 1.92

$ 75.70

$ 1.90

2080.35

Explanation / Answer

please find the solution  attached for questio 1-4

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