Hi everyone! If you enjoyed this tutorial, you might also find our step-by-step guide on estimating stock betas helpful. Check it out here: ruclips.net/video/oy9s56qECto/видео.html
Thanks for this video, how do you find the weighted avg of your own portfolio in the past? Cus I want to compute my weighted avg and the returns from when I bought them. You have any idea?
Not sure exactly what you mean by the "weighted average". Are you referring to the investment weights? In this tutorial, we're assuming an equally-weighted portfolio, but you can pick any weight you like.
@@has9629 Oh, ok. You can download historical prices from Yahoo! finance and compute the returns. Have a look at these two tutorials where we explain how to do that: ruclips.net/video/ulYfFTBuEsQ/видео.html (downloading prices), ruclips.net/video/I1iYW-h5Xzk/видео.html (computing returns).
hi there, we're planning to make a video about tracing the efficient frontier, but that'll be coming later on. the best thing to do is to turn notifications on so you'd know when it comes out.
You're right: It's conventional (but not always a must) to annualize returns and standard deviations. For standard deviation, you can multiply the monthly standard deviation by the square root of 12 to get an annualized figure. And, for monthly returns, you can either multiply by 12 (that would ignore the effect of compounding) or compound for 12 months as follows: (1+return)^12 - 1.
If you mean the investment weights, the investor chooses them based on how much he wants to invest in each stock. If you're interested in finding the optimal risky portfolio with optimal investment weights, we've got a separate tutorial on that here: ruclips.net/video/FWqiaHJqXgs/видео.html
You can estimate the expected return by either using the average of historical returns or calculating betas (learn more here: ruclips.net/video/oy9s56qECto/видео.html ) and applying the CAPM equation (details here: ruclips.net/video/ejDFeVQElAg/видео.html ).
The short answer is "yes". Especially if you're sample is large using var.p vs var.s would have little practical impact on your results. The reason to focus on var.s is that it gives an unbiased estimator if you're interested in forecasting variance.
Hi there, it depends on your objectives. For example, if you'd like to compute portfolio risk & return to evaluate performance over a specific period, you'd use daily returns covering that entire period. Or, if it's for forecasting future returns, you'd typically need at least one year's worth of daily data.
Daily returns are typically small. So, starting your sample period one day before or after would normally make very little practical difference in your results. Ideally, you'd like to use the price you paid as the starting point. So, if you bought your shares, say, on Jan 1 you can use either the closing price on that day or the exact price you paid during that day as your starting point.
Hi everyone! If you enjoyed this tutorial, you might also find our step-by-step guide on estimating stock betas helpful. Check it out here: ruclips.net/video/oy9s56qECto/видео.html
Thanks for this video, how do you find the weighted avg of your own portfolio in the past? Cus I want to compute my weighted avg and the returns from when I bought them. You have any idea?
Not sure exactly what you mean by the "weighted average". Are you referring to the investment weights? In this tutorial, we're assuming an equally-weighted portfolio, but you can pick any weight you like.
@@initialreturnsorry I meant to ask how did you find the returns for the last x months?
@@has9629 Oh, ok. You can download historical prices from Yahoo! finance and compute the returns. Have a look at these two tutorials where we explain how to do that: ruclips.net/video/ulYfFTBuEsQ/видео.html (downloading prices), ruclips.net/video/I1iYW-h5Xzk/видео.html (computing returns).
Clutch asf for uploading these🤞🙏
prof are you able to do this for 3 stocks and compute the matrices of returns and standard deviation to graph the efficient frontier please?thank you
hi there, we're planning to make a video about tracing the efficient frontier, but that'll be coming later on. the best thing to do is to turn notifications on so you'd know when it comes out.
You're Amazing and i love you and i hope you succedd in life
Shouldn't the returns and standard deviation be annualized ?
You're right: It's conventional (but not always a must) to annualize returns and standard deviations. For standard deviation, you can multiply the monthly standard deviation by the square root of 12 to get an annualized figure. And, for monthly returns, you can either multiply by 12 (that would ignore the effect of compounding) or compound for 12 months as follows: (1+return)^12 - 1.
How I can find weights?
If you mean the investment weights, the investor chooses them based on how much he wants to invest in each stock. If you're interested in finding the optimal risky portfolio with optimal investment weights, we've got a separate tutorial on that here: ruclips.net/video/FWqiaHJqXgs/видео.html
I have 20years[return] information of stocks, bonds and real estate. I have to find Er, correl, volatility. How can I find expected return?
You can estimate the expected return by either using the average of historical returns or calculating betas (learn more here: ruclips.net/video/oy9s56qECto/видео.html ) and applying the CAPM equation (details here: ruclips.net/video/ejDFeVQElAg/видео.html ).
Can I use var.p?
The short answer is "yes". Especially if you're sample is large using var.p vs var.s would have little practical impact on your results. The reason to focus on var.s is that it gives an unbiased estimator if you're interested in forecasting variance.
Hi, how could i obtain stock returns data?
Hi there, we have a tutorial on that here: ruclips.net/video/ulYfFTBuEsQ/видео.html
HOW MANY DAYS DATA WE NEED TO TAKE ?
Hi there, it depends on your objectives. For example, if you'd like to compute portfolio risk & return to evaluate performance over a specific period, you'd use daily returns covering that entire period. Or, if it's for forecasting future returns, you'd typically need at least one year's worth of daily data.
Thank You so much for your response..
Can i take data from the day that i have made investment ??
Daily returns are typically small. So, starting your sample period one day before or after would normally make very little practical difference in your results. Ideally, you'd like to use the price you paid as the starting point. So, if you bought your shares, say, on Jan 1 you can use either the closing price on that day or the exact price you paid during that day as your starting point.
@@initialreturn 🙏🏻🙏🏻