College Essays-Discuss the risk and potential return of Apple.
Analyse the three stocks and the S&P 500 index by answering the following:
(a) Compute the time -weighted return of all the stocks and the S&P 500.
(b) Calculate the standard deviation of the returns of all the stocks and the S&P 500.
Given the covariance matrix below and the standard deviations you calculated in question 3(b), calculate the beta of Apple, Amazon and Disney with respect to the S&P 500 index.
(d) Discuss the risk and potential return of Apple.
(e) Discuss the impact of including Apple in Kyle’s portfolio.
(f) Discuss the impact of including Amazon in Kyle’s portfolio
