Using the company Shell Midstream Partners L.P. (SHLX) Go to yahoo.com and download five years of the monthly prices of the stock that you have chosen. Also download 5 years of monthly data for the S&P 500 prices (SPY) for the same period into your Excel spreadsheet.
1. Estimate the monthly return of the stock and the S&P 500.
2. Estimate average monthly return for both the stock and the S&P500. (Average of 5 years monthly returns of step 1)
3. Estimate the standard deviation of monthly returns of the stock and the S&P500 (SPY) over the past 5 years.
4. Compare total risk of your stock and S&P500. In addition, compare the market risk of your stock & SPY.
5. Compare the risk-return trade off of your stock and S&P500 (SPY). (Hint: standard deviation of returns is a measure of total risk, whereas beta is a measure of market risk).