Essay about portfolio analysis

Submitted By aaabary
Words: 727
Pages: 3

Question One. Download stock prices for any three different companies - 22 daily closing prices for each company. You can use any database to obtain the prices e.g. DataStream, yahoo finance etc. Use prices from September 2013 onwards. ANSWER:

Company A
Company B

Company C

Apple Inc.(AAPL)
Microsoft Corporation (MSFT)
Google Inc. (GOOG)
Date
Closing Price
Closing Price

Closing Price
01-Nov-13
520.03
35.53

1,027.04

31-Oct-13
522.7
35.41

1,030.58

30-Oct-13
524.9
35.54

1,030.42

29-Oct-13
516.68
35.52

1,036.24

28-Oct-13
529.88
35.57

1,015.00

25-Oct-13
525.96
35.73

1,015.20

24-Oct-13
531.91
33.72

1,025.55

23-Oct-13
524.96
33.76

1,031.41

22-Oct-13
519.87
34.58

1,007.00

21-Oct-13
521.36
34.99

1,003.30

18-Oct-13
508.89
34.96

1,011.41

17-Oct-13
504.5
34.92

888.79

16-Oct-13
501.11
34.64

898.03

15-Oct-13
498.68
34.49

882.01

14-Oct-13
496.04
34.45

876.11

11-Oct-13
492.81
34.13

871.99

10-Oct-13
489.64
33.76

868.24

09-Oct-13
486.59
33.07

855.86

08-Oct-13
480.94
33.01

853.67

07-Oct-13
487.75
33.3

865.74

04-Oct-13
483.03
33.88

872.35

03-Oct-13
483.41
33.86

876.09

02-Oct-13
489.56
33.92

887.99

Question two.
Present in a table the name of the companies, the dates, the prices and the returns (in %). The table must fit in one page only, and it does not count towards the word limit.

ANSWER:

Company A

Company B

Company C

Apple Inc.(AAPL)
Microsoft Corporation (MSFT)
Google Inc. (GOOG)
Date
Price
Returns(%)
Price
Returns(%)
Price
Returns(%)
01-Nov-13
520.03
-0.511%
35.53
0.339%
1,027.04
-0.3435%
31-Oct-13
522.7
-0.419%
35.41
-0.366%
1,030.58
0.0155%
30-Oct-13
524.9
1.591%
35.54
0.056%
1,030.42
-0.5616%
29-Oct-13
516.68
-2.491%
35.52
-0.141%
1,036.24
2.0926%
28-Oct-13
529.88
0.745%
35.57
-0.448%
1,015.00
-0.0197%
25-Oct-13
525.96
-1.119%
35.73
5.961%
1,015.20
-1.0092%
24-Oct-13
531.91
1.324%
33.72
-0.118%
1,025.55
-0.5682%
23-Oct-13
524.96
0.979%
33.76
-2.371%
1,031.41
2.4240%
22-Oct-13
519.87
-0.286%
34.58
-1.172%
1,007.00
0.3688%
21-Oct-13
521.36
2.450%
34.99
0.086%
1,003.30
-0.8019%
18-Oct-13
508.89
0.870%
34.96
0.115%
1,011.41
13.7963%
17-Oct-13
504.5
0.676%
34.92
0.808%
888.79
-1.0289%
16-Oct-13
501.11
0.487%
34.64
0.435%
898.03
1.8163%
15-Oct-13
498.68
0.532%
34.49
0.116%
882.01
0.6734%
14-Oct-13
496.04
0.655%
34.45
0.938%
876.11
0.4725%
11-Oct-13
492.81
0.647%
34.13
1.096%
871.99
0.4319%
10-Oct-13
489.64
0.627%
33.76
2.086%
868.24
1.4465%
09-Oct-13
486.59
1.175%
33.07
0.182%
855.86
0.2565%
08-Oct-13
480.94
-1.396%
33.01
-0.871%
853.67
-1.3942%
07-Oct-13
487.75
0.977%
33.3
-1.712%
865.74
-0.7577%
04-Oct-13
483.03
-0.079%
33.88
0.059%
872.35
-0.4269%
03-Oct-13
483.41
-1.256%
33.86
-0.177%
876.09
-1.3401%
02-Oct-13
489.56

33.92

887.99

Workings,

, Return for company A on 01-nov-13= . Where P1 on is the current price and p0 is the previous price.

Question Three.
Calculate the average return and variance of returns for each company
(a) Briefly discuss the results. Compare them with the theory discussed in class e.g. are there any companies that dominate other companies? (Maximum of 200 words).

Answer:

Average Returns
Variance
Total Returns
Company A
0.281%
0.013%
0.745%
Company B
0.223%
0.025%
0.516%
Company C
0.706%
0.097%
0.997%

Formula for finding average returns and variance on Microsoft Excel

Average Returns (%)
Variance
Total Returns
Company A
=AVERAGE(D5:D26)
=VAR(D5:D26)
=SUM(D5-D26)
Company B
=AVERAGE(G5:G26)
=VAR(G5:G26)
=SUM(G5-G26)
Company C
=AVERAGE(J5:J26)
=VAR(J5:J26)
=SUM(J5-J26)

With the…