1. Part one:
DIRECTIONS: Please insert graph on here so I can copy and paste to my excel sheet. Must look
like the example picture below I provided
Go to finance.yahoo.com, enter the symbol for the following ETFs one at a time (SPY,
MDY,SLY, EFA, EEM, TLT, LQD, and GLD), and click on " Get Quotes". On the left-side
menu, click on "Historical Prices, then enter starting and ending dates that correspond to the
most recent three years. Select the "Monthly" option. Save the data to a spreadsheet. Sort the
data from earliest to latest. Calculate the return on the stock and the return on the index for each
day using the adjusted closing prices. Compute the annual total return Compute the annual
average return Compute the standard deviation Prepare a covariance matrix Prepare a correlation
matrix
Part two: Using the Fama-French dataset, estimate the beta of each of your funds Repeat the
above problem using DJI, and S&P 500 index Write a 250-word essay on why your answers to
the above two requests might be different. Part three: Construct an equally weighted portfolio of
your funds. Prepare a table showing the arithmetic mean returns, standard deviation over the
three year period. Prepare a graph showing the three-year-performance of each of your funds and
the portfolio. This chart should show the dollar value of an initial $1,000 investment over the
three-year period.