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Microsoft Stock Price Analysis 1993-2004

The document provides annual stock price and return data for six stocks - General Electric, Microsoft, Johnson & Johnson, Kellogg, Boeing, and IBM - from 1993 to 2004. It includes information on stock prices, shares outstanding, market value, annual returns, standard deviation of returns, and excess returns relative to the average return for each stock over this period. Portfolio optimization results are also presented, showing the minimum risk, maximum return, mean, variance, and standard deviation that can be achieved by varying the allocation to each stock.

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0% found this document useful (0 votes)
21 views5 pages

Microsoft Stock Price Analysis 1993-2004

The document provides annual stock price and return data for six stocks - General Electric, Microsoft, Johnson & Johnson, Kellogg, Boeing, and IBM - from 1993 to 2004. It includes information on stock prices, shares outstanding, market value, annual returns, standard deviation of returns, and excess returns relative to the average return for each stock over this period. Portfolio optimization results are also presented, showing the minimum risk, maximum return, mean, variance, and standard deviation that can be achieved by varying the allocation to each stock.

Uploaded by

mirza azeem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

ANNUAL STOCK PRICE AND RETURN DATA FOR SIX STOCKS

General Electric (GE), Microsoft (MSFT), Johnson & Johnson (JNJ), Kellogg (K), Boeing (BA),
IBM
Price Data
Date GE MSFT JNJ K BA IBM
4-Jan-93 2.36 2.68 6.78 20.37 2.34 11.79
3-Jan-94 4.15 2.64 7.20 18.47 4.21 14.62
3-Jan-95 4.98 3.68 10.91 19.90 4.20 15.53
2-Jan-96 8.80 5.73 19.43 29.03 8.09 20.41
2-Jan-97 13.51 12.64 24.44 27.59 13.93 30.78
2-Jan-98 21.64 18.49 29.15 38.01 20.19 31.60
4-Jan-99 30.57 43.37 38.04 34.14 23.47 30.94
3-Jan-00 40.51 48.51 39.36 20.93 36.27 39.24
2-Jan-01 42.42 30.26 43.80 23.52 48.13 48.78
2-Jan-02 34.82 31.58 55.19 28.70 41.39 51.05
2-Jan-03 22.25 23.52 52.15 32.00 32.81 59.63
2-Jan-04 31.86 28.16 51.49 37.36 48.86 81.95

Shares Outstanding 10.56 10.86 2.97 0.41 0.84 0.79


Market Value 336.44 305.82 152.93 15.44 41.01 65.13
Percentage of Portfolio 37% 33% 17% 2% 4% 7%

Return Data
Date GE MSFT JNJ K BA IBM
3-Jan-94 56.44% -1.50% 6.01% -9.79% 58.73% 21.51%
3-Jan-95 18.23% 33.21% 41.56% 7.46% -0.24% 6.04%
2-Jan-96 56.93% 44.28% 57.71% 37.76% 65.55% 27.33%
2-Jan-97 42.87% 79.12% 22.94% -5.09% 54.34% 41.08%
2-Jan-98 47.11% 38.04% 17.62% 32.04% 37.11% 2.63%
4-Jan-99 34.55% 85.25% 26.62% -10.74% 15.05% -2.11%
3-Jan-00 28.15% 11.20% 3.41% -48.93% 43.53% 23.76%
2-Jan-01 4.61% -47.19% 10.69% 11.67% 28.29% 21.76%
2-Jan-02 -19.74% 4.27% 23.11% 19.90% -15.09% 4.55%
2-Jan-03 -44.78% -29.47% -5.67% 10.88% -23.23% 15.54%
2-Jan-04 35.90% 18.01% -1.27% 15.49% 39.82% 31.80%

Average 23.66% 21.38% 18.43% 5.51% 27.63% 17.63%


Standard Deviation 30.67% 38.82% 18.08% 22.75% 28.54% 12.93%
Sharp Ratio 0.7713 0.5509 1.0193 0.2423 0.9681 1.3631

Excess Returns
Date GE MSFT JNJ K BA IBM
3-Jan-94 32.78% -22.89% -12.42% -15.31% 31.11% 3.89%
3-Jan-95 -5.43% 11.83% 23.13% 1.94% -27.86% -11.59%
2-Jan-96 33.27% 22.90% 39.28% 32.25% 37.93% 9.70%
2-Jan-97 19.21% 57.73% 4.51% -10.60% 26.72% 23.46%
2-Jan-98 23.45% 16.65% -0.81% 26.53% 9.49% -15.00%
4-Jan-99 10.89% 63.87% 8.19% -16.25% -12.57% -19.74%
3-Jan-00 4.49% -10.18% -15.02% -54.44% 15.90% 6.14%
2-Jan-01 -19.05% -68.58% -7.74% 6.15% 0.67% 4.14%
2-Jan-02 -43.40% -17.11% 4.68% 14.39% -42.71% -13.08%
2-Jan-03 -68.45% -50.85% -24.10% 5.37% -50.86% -2.09%
2-Jan-04 12.24% -3.38% -19.70% 9.97% 12.20% 14.17%

Method No 1

GE MSFT JNJ K BA IBM


GE 0.0941 0.0690 0.0201 -0.0039 0.0780 0.0112
MSFT 0.0690 0.1507 0.0375 -0.0047 0.0345 -0.0020
JNJ 0.0201 0.0375 0.0327 0.0165 0.0092 -0.0036
K -0.0039 -0.0047 0.0165 0.0518 -0.0069 -0.0042
BA 0.0780 0.0345 0.0092 -0.0069 0.0814 0.0226
IBM 0.0112 -0.0020 -0.0036 -0.0042 0.0226 0.0167

Method No 2

GE MSFT JNJ K BA IBM


GE 0.1035 0.0758 0.0222 -0.0043 0.0857 0.0123
MSFT 0.0758 0.1657 0.0412 -0.0052 0.0379 -0.0022
JNJ 0.0222 0.0412 0.0360 0.0181 0.0101 -0.0039
K -0.0043 -0.0052 0.0181 0.0570 -0.0076 -0.0046
BA 0.0857 0.0379 0.0101 -0.0076 0.0896 0.0248
IBM 0.0123 -0.0022 -0.0039 -0.0046 0.0248 0.0184
FOR SIX STOCKS
JNJ), Kellogg (K), Boeing (BA),

Portfolio Optimization

Average SD Sharp Ratio W1


GE 0.23660815 0.3067474471 0.7713451424 0.3669856
MSFT 0.21382598 0.3881707615 0.5508554412 0.3335814
JNJ 0.18431005 0.1808260143 1.0192673175 0.1668087
K 0.05513976 0.2275414638 0.2423284143 0.0168472
BA 0.27625529 0.2853562866 0.9681065324 0.0447381
IBM 0.17625978 0.1293033976 1.3631488748 0.071039

Sum 1
Rp 0.2147
Var.p 0.0584
SDp 0.2534
Sharp Ratio 0.8473419

100.00%
Constraints

Min. Risk 0.2147


Max. Return 0.2147
>=1.299

Mean
Variance
SD

Proportion Of Portfolio SD Mean

-0.5
-0.4
-0.3
-0.2
-0.1
0
1
1.1
1.2
1.3
1.4
1.5
W2 W3 W4
0.366986 0.366986 0.366986
0.333581 0.333581 0.333581
0.166809 0.166809 0.166809
0.016847 0.016847 0.016847
0.044738 0.044738 0.044738
0.071039 0.071039 0.071039

1 1 1
0.2147 0.2147 0.2147
0.0584 0.0584 0.0584
0.2534 0.2534 0.2534
0.847342 0.847342 0.847342

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