Each student will download the past five years of monthly price data for 3 stocks of his/her choice and S&P 500 Index ETF (SPY) from Yahoo! Finance (https://finance.yahoo.com/). Student will use Excel to compute monthly returns for both stocks and S&P 500 Index. Students will then use Excel to estimate means and standard deviations for each stock’s returns, as well as a covariance matrix across all returns. Students will also use Excel to estimate Security Characteristic Line (SCL) and the beta coefficient by using a regression analysis. Students will then compute the expected return on a stock, implied by the beta coefficient under the single factor specification of the Capital Asset Pricing Model. Students will turn in their calculations, including spreadsheets showing the raw stock prices, calculations, and relevant graphs.In the project, students will derive an optimal portfolio using the optimization technique using Excel solver. 3 companies are
Synopsys (SNPS), Visa (V) and Walmart (WMT). the period is 5 years from april to april. It should be excel file. Risk free rate monthly should be 2%/12 =0.17%