Add a column in your Excel worksheet with the average return across stocks for each month. This is the monthly return to an equally weighted portfolio of these 12 stocks. Compute the mean and standard deviation of monthly returns for the equally weighted portfolio. Double check that the average return on this equally weighted portfolio is equal to the average return of all of the individual stocks. Convert these monthly statistics to annual statistics (as described in Step 3) for interpretation.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here