Find 19 Stocks You Want to Research - Accounting Assignment Help

Assignment Task:

Task:

Using the R script, answer the following questions. Please show all works for full credit.

1. Please use the following instructions.

1) Find 19 stocks you want to research. You can find ticker symbols from Google, Yahoo! Finance, MSN money, and so on (i.e. The ticker symbol of Apple Inc. is “AAPL”). 2) Run the following steps.

i. Use the following libraries: library(quantmod) library(tseries) library(xts)

ii. From Yahoo! Finance, download daily prices of stocks (from Jan. 1, 2012 to Dec. 31, 2019) you selected to research. i.e. Suppose that you want to download daily stock prices of Apple Inc. whose ticker symbol is “AAPL”. Then, run as follows: getSymbols("AAPL", src="yahoo", from='2012-01-01', to='2019-12-31')

iii. Obtain monthly log stock returns for each stock. For example, if you downloaded daily stock prices of Apple, Inc. and Microsoft Corporation, then you will need to run the following: AAPL.rtn <- monthlyReturn(AAPL$AAPL.Adjusted, subset=NULL, type='log', leading=TRUE) MSFT.rtn <- monthlyReturn(MSFT$MSFT.Adjusted, subset=NULL, type='log', leading=TRUE) iv. Prepare your data containing all monthly log stock returns of 19 stocks, and assign the name 'myportfolio' (Please refer to p. 11 on Ch 6 course material to see how 'myportfolio' should look like.)

3) Using 'myportfolio' containing monthly log stock returns of 19 stocks, a) [5 points] Find the weights of mean-variance efficient portfolio (you can set your own target return.). Please highlight your answer.

b) [10 points] Find (plot) efficient frontier. ? The plot of efficient frontier should be LEGIBLE (as fancy as possible). ? Extra Credit (5 points: NO PARTIAL CREDITS) – By your OWN research Suppose you want to invest in 17 stocks you selected above. Then, you obtained the weights of mean-variance efficient portfolio in 3) for your portfolio. If you construct your portfolio in 2020 according to those weights, how your investment performance would be in 2020? This material is only for the use of students enrolled in MBA 728 for purposes associated with the course and may not be retained or further disseminated. All information in this material is proprietary to Dr. Sung Ik Kim. Scanning, copying, posting to a website or reproducing and sharing in any form is strictly prohibited.

2. A bond price is the present value of all future cash flows (coupon interest every year and par value at time to maturity) as shown in Ch 7 course material. That is, Bond Price = ? ???????????? × ????_???????????????? (1 + ????) ???? ???? ????=1 + ???????????? (1 + ????) ???? , where ????????????: par value of the bond ????_????????????????: annual coupon rate ????: time to maturity ????: bond yield A function to calculate a bond price is presented on p. 5 in Ch 7 course material. As you can see, the function exactly illustrates the equation above.

1) Suppose you have to find coupon rate when you know all other variables, such as the bond price, par value, time to maturity, and yield. To find coupon rate instead of bond price, you can use the following formula (if you solve the equation above for c_rate, you can easily obtain this formula.).

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