You will use the stocks you chose in part one calculate

Question

Project Part (calculating historical statistics and building a fund)

In project part 2, you will use the stocks you chose in part one, calculate returns, run statistics, and build a fund.

Calculate monthly returns for your securities.

Download the spreadsheet "Monthly S&P 500 Total Returns". You can see the format. Looking for 5 years of monthly returns starting in 1/31/2013 and ending in 12/31/2017. Just like the data in project one, there are many resources to get this data. But, you can get it from Yahoo finance. Navigate to finance.yahoo.com, enter a selected ticker in the search bar, and then navigate to the "Historical Data" section of that page. Adjust the "Time Period" and "Frequency" to reflect the following, and then hit "Apply":

Next hit the "Download Data" button and you will have a spreadsheet of 5 years of daily prices. (Note: if you download this as monthly instead of daily, your calculations will be slightly off because for some reason this doesn't pull the actual final day in the month)

Return is usually calculated close to close. Additionally, for stocks, yahoo adjusts the prices for corporate actions in the "Adj Close" column. So the monthly return is just a simple ratio of this month's Adj Close divided by last month's Adj Close*. For example, the monthly return for Dec 2017 is as follows:

r_12/2017 = (AdjCLose_12/29/2017/AdjCLose_11/30/2017) - 1

Note that the calculation is as of the last trading date of the month. I have uploaded a spreadsheet called "AAPL Yahoo data" with the calculations done as an example. You can use this spreadsheet as a template for your calculations. However, you will be expected to make calculations like these yourself.

Calculate a table of statistics.

Build a table, Table 2, which calculates some statistics on the monthly returns you calculated for your 11 stocks. Please include the Arithmetic Average, the Geometric Average Return, the Continuously Compounded Rate of Return, the Standard Deviation, the Variance, and the Sharpe Ratio.

Build a fund.

Build a table, Table 3, which reports your portfolio holdings as of 12/31/2017. This will be our starting point for much of the analysis we will do in subsequent project parts. For each of your eleven companies, you will need the price per share (as of 12/31/2017). Use the last closing price (not the Adj Close) before 12/31/2017. After that, choose an arbitrary amount of shares. Calculate the value of each holding by multiplying the price by the number of shares. And then, based on the values, calculate the percent weight of each holding. Lastly, Sum up the portfolio values to get a total (and also sum up the weights to verify they equal 100%). I recommend making your total portfolio value between $5 and $10 million and also that you choose enough shares of each security to have a meaningful weight (i.e. greater than 1-2%).

Selected 11 stocks

Ticker/ Symbol	Company Name	Market value Billions(B)	Headquarters	Date Of First Trade	Economic Sector
AXP	American Express Co	87.64B	New York, New York	06/30/1976	Financials
AMZN	Amazon.com Inc	628.94B	Seattle Washington	11/18/2005	Consumer Discretionary
BAC	Bank Of America Corp	323.33B	Charlotte, North Carolina	06/30/1976	Financial
CMG	Chipotle Mexican Grill	9.24B	Denver, Colorado	04/28/2011	Consumer Discretionary
CSCO	Cisco Systems, Inc	202.05B	San Jose California	12/01/1993	Information Technology
EFX	Equifax Inc.	14.75B	Atlanta, Georgia	06/19/1997	Industrial
GS	Goldman Sachs Group	96.95B	New York, New York	07/22/2001	Financial
HES	Hess Corporation	17.33B	New York, New York	05/31/1984	Energy
JNJ	Johnson & Johnson	391.59B	New Brunswick, New Jersey	06/30/1973	Health Care
KIM	Kimco Realty	7.13B	New Hyde Park, New York	04/04/2016	Real Estate.
MSFT	Microsoft Corp.	691.23B	Redmond, Washington	09/27/1994	Information Technology