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  3. Introduction to Portfolio Analysis in R

Exercise

The monthly mean and volatility

You have now created month to month returns for the S&P 500. Next, you will need to do a descriptive analysis of the returns.

In this exercise, you will calculate the mean (arithmetic and geometric) and volatility (standard deviation) of the returns. These returns are available in your workspace as the variable sp500_returns.

Instructions

100 XP
  • Compute the arithmetic mean value of the return series.
  • Compute the geometric mean value of the return series using mean.geometric().
  • Compute the standard deviation of the return series.