Saint Petersburg College Financial Management Mini Case Excel MINICASE 1 Page 1 This assignment will require you to analyze time series of monthly return

Saint Petersburg College Financial Management Mini Case Excel MINICASE 1

Page 1

This assignment will require you to analyze time series of monthly returns.

Start by retrieving MONTHLY data for the period of 08/01/2015 – 08/31/2019 from Yahoo

website for

− S&P 500 Index (ticker: ^GSPC)

− General Electric Company (ticker: GE)

− Chevron Corporation (ticker: CVX)

− Intel Corporation (ticker: INTC)

− Tesla, Inc. (ticker: TSLA)

Instructions for downloading the data from Yahoo! Website (https://finance.yahoo.com/): To

obtain the monthly data for each company, on Yahoo! Finance website, enter the ticker symbol

under Quote Lookup. Then, click on “Historical Data”. Enter “Time Period” as given above.

For “Frequency”, make sure Monthly is selected and then click on “Apply”. Click on

“Download Data”.

Saving your final file:

Keep only Date and Adj Close columns for each company. Put all five sets of data in one excel

file to do further analysis.

Very important: Save your final file as a .xls or .xlsx file before you start the computations.

Comma delimited (.csv) files do not retain the formulae and cell references after closing the file.

You will receive a grade of zero if your file does not contain cell references and formulae that

show how you arrived at the various answers.

Calculating Returns:

Use the ‘Adj Close’ column to obtain returns for each period. Remember that the Adjusted Close

column has already adjusted the prices for dividends and stock splits so you do not have to

adjust for it again. Just use the adjusted close column to obtain the return R for each month t as:

Rt = Adj Closet/Adj Closet-1 – 1 MINICASE 1
Dr. Palkar
This assignment will require you to analyze time series of monthly returns.
Start by retrieving MONTHLY data for the period of 08/01/2015 – 08/31/2019 from Yahoo
website for
− S&P 500 Index (ticker: ^GSPC)
− General Electric Company (ticker: GE)
− Chevron Corporation (ticker: CVX)
− Intel Corporation (ticker: INTC)
− Tesla, Inc. (ticker: TSLA)
Instructions for downloading the data from Yahoo! Website (https://finance.yahoo.com/): To
obtain the monthly data for each company, on Yahoo! Finance website, enter the ticker symbol
under Quote Lookup. Then, click on “Historical Data”. Enter “Time Period” as given above.
For “Frequency”, make sure Monthly is selected and then click on “Apply”. Click on
“Download Data”.
Saving your final file:
Keep only Date and Adj Close columns for each company. Put all five sets of data in one excel
file to do further analysis.
Very important: Save your final file as a .xls or .xlsx file before you start the computations.
Comma delimited (.csv) files do not retain the formulae and cell references after closing the file.
You will receive a grade of zero if your file does not contain cell references and formulae that
show how you arrived at the various answers.
Calculating Returns:
Use the ‘Adj Close’ column to obtain returns for each period. Remember that the Adjusted Close
column has already adjusted the prices for dividends and stock splits so you do not have to
adjust for it again. Just use the adjusted close column to obtain the return R for each month t as:
Rt = Adj Closet/Adj Closet-1 – 1
Page 1 of 2
MINICASE 1
Dr. Palkar
Solve for the following:
[20 points]
A. Calculate the monthly returns for 08/01/2015 – 08/31/2019 period for
(i)
S&P 500
(ii)
GE
(iii)
Chevron
(iv)
Intel
(v)
Tesla
[15 points]
B. What is the average monthly return and standard deviation of returns for
08/01/2015 – 08/31/2019 period for
(i)
S&P 500
(ii)
GE
(iii)
Chevron
(iv)
Intel
(v)
Tesla
[25 points]
C. Calculate the correlation between:
(i)
GE and Chevron
(ii)
GE and Intel
(iii)
GE and Tesla
(iv)
Chevron and Tesla
(v)
Chevron and Intel
(vi)
Intel and Tesla
(vii) Explain your findings
[20 points]
D. Calculate the stock betas for the 08/01/2015 – 08/31/2019 period for:
(i)
GE
(ii)
Chevron
(iii)
Intel
(iv)
Tesla
(v)
Comment on your findings.
[60 points]
E. Form three portfolio sand then answer the following questions:
 Portfolio 1: 50% in GE and 50% in Chevron
 Portfolio 2: 1/3rd in GE, 1/3rd in Chevron and 1/3rd in Intel
 Portfolio 3: 25% in GE, 25% in Chevron, 25% in Intel, and 25% in
Tesla
(i)
What is the average return and standard deviation of each portfolio?
(ii)
What happens to your portfolio return and standard deviation as you
add more securities in your portfolio?
(iii)
What could be the reason behind the pattern that you observe?
Page 2 of 2

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