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3. Question Part C (40 Marks) Mr. Morris had $100,000 in his account. Using this fund, he made portfolio of two NYSE lis

Posted: Tue Nov 16, 2021 8:28 am
by answerhappygod
3 Question Part C 40 Marks Mr Morris Had 100 000 In His Account Using This Fund He Made Portfolio Of Two Nyse Lis 1
3 Question Part C 40 Marks Mr Morris Had 100 000 In His Account Using This Fund He Made Portfolio Of Two Nyse Lis 1 (114.09 KiB) Viewed 101 times
3. Question Part C (40 Marks) Mr. Morris had $100,000 in his account. Using this fund, he made portfolio of two NYSE listed stocks - General Electric and Pfizer on 01 Jan 2019 in the ratio of 60:40, i.e. 60% funds in General Electric & 40% funds in Pfizer The daily stock data of both stocks can be found on market websites such as finance.yahoo.com. Download daily data for 1 year from 1 Jan 2019 - 1st Oct 2021. Using the stock data of the two stocks, you are required to explain the below concepts and then compute for the given stocks: a. b. c. Annual return of both General Electric and Pfizer (5 marks) Annualized standard deviation of returns of both General Electric and Pfizer (5 marks) Correlation coefficient of returns of General Electric and Pfizer. What does this correlation coefficient signify about the correlation of the two stocks and corresponding decision from an investor? (5 marks) Portfolio return of the portfolio of two stocks. (5 marks) Portfolio risk (standard deviation of the portfolio of two stocks. (5 marks) Critically analyze your investment decision in these two companies (5 Marks). Given an option, would you like to invest in any other company? Or would you like to have a different ratio of investment in the two? (10 marks) d. e. f.