1. Exercise One: You are a portfolio analyst at J.P. Morgan, and your company is...
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Finance
1. Exercise One: You are a portfolio analyst at J.P. Morgan, and your company is heavily invested in S&P 500 stocks, and technology stocks that is to say, NASDAQ stocks. Your boss tells you: Using Yahoo Finance, I need you to download the adjusted closing prices for both, S&P 500 (ticket: ^GSPC), and NASDAQ (ticker: ^IXIC) for the last year using a monthly frequency. Then, I want you to compute: (a) the monthly return for each index, (b) the average monthly return for both indices, (c) the volatility of monthly return for each one, (e) the Coefficient of Variation for each index, (f) in your view, which one has a better risk-to-return ratio (i.e. Coefficient of Variation) and why? (Hint: (1) You may use the Statistical Analysis Tab from the Statistical Measures Module as your guide. (2) Please do not forget to include the hat symbol ^ when typing the ticker for both indices. (3) If the DOWNLOAD button is not available in Yahoo Finance, please copy and paste the date into Excel as needed).
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