Pick a dividend-paying common stock that has been trading for at
least five years. Done - Lumen Technologies, Inc. (LUMN) - Search
the ticker symbol in Yahoo! Finance to arrive at the stock’s page.
- Download the most recent 61 months of the stock’s monthly
“adjusted” close prices from Yahoo! Finance “Historical
Data/Historical Prices” section. Note the adjusted close prices
data from Yahoo! Finance are adjusted for dividends and splits; in
other words, cash distribution is already included. (Hint:
Conventionally month-end data are used. Download the daily
observations and retain only the end-of-month observations.) - Form
time series of the holding period return data. The holding period
return during month t is rt = (AdjPt – AdjPt–1)/ AdjPt–1, where
AdjPt is the adjusted close price at month t. This step results in
60 months of returns from 61 adjusted prices. - Repeat the above
procedure for SPY (SPDR S&P 500 ETF) and SHY (iShares Barclays
1-3 Year Treasury Bond ETF) and obtain their most recent 60 months
of holding period return data. SPY and SHY are the proxies for
market index and the risk-free asset, respectively.
Pick a dividend-paying common stock that has been trading for at least five years. Done - Lumen Technologies, Inc. (LUMN
-
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Pick a dividend-paying common stock that has been trading for at least five years. Done - Lumen Technologies, Inc. (LUMN
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