Go to Yahoo (or an alternative site) and download 5 years of historical monthly
Go to Yahoo (or an alternative site) and download 5 years of historical monthly prices for two assets:
1) Stock Name – Union Pacific Corporation
NYSE – UNP
2) The S&P 500 (^GSPC)
These will need to be converted to annual rates of returns.
Go to FRED and download the series for 3-month Treasury securities (monthly average)
https://fred.stlouisfed.org/series/DTB3#0
Calculated the Sharpe ratio for UNP
Calculate the average difference between UNP return and the S&P 500 and calculate the tracking error.
Leave a Reply