Analyzing Performance with tidyquant

You are evaluating the performance of two stocks, Microsoft and Apple, for future investment.

Q1 Import stock prices of Microsoft and Apple for the last 20 years.

Hint: Add group_by(symbol) at the end of the code so that calculations below will be done per stock.

Q2 Describe the first observation (first row) using all variables.

-In the first row the stock is for Microsoft on March 8th, 1999.The open price was 38.87500 which was the price when the stock first opened. The high was 39.80857 which was the highest price for the stock during this day. Next is the low which was 38.75000 which was the lowest price of the stock for the day. The closing was 39.75000 which was the closing price for the end of the day. Next is the volume which was 46726000 which was how many people traded that particular microsoft stock for the day. Finally the adjusted column for this day shows 28.72423 which was the closing price adjusted to dividends and stock prices.

Q3 Create a line chart for adjusted closing prices of both stocks.

Hint: Use ggplot2::facet_wrap. Refer to the ggplot2 cheatsheet. See the section for Faceting.

Q4 Calculate yearly returns, and save the result under returns_yearly.

Hint: Take the adjusted variable from Stocks, and calculate yearly returns using tq_transmute(), instead of tq_mutate(), which is used when periodicity changes. Another difference between the two is that tq_transmute() returns only newly-created columns while tq_mutate() adds new columns to existing variables.

Q5 Create a boxplot for returns of both stocks.

Hint: Refer to the ggplot2 cheatsheet. Look for geom_boxplot under Two Variables. Note that the discrete variable should be mapped to the x-axis and the continuous variable to the y-axis.

Q6 For Which of the two stocks is the typical yearly return expected to be higher?

Hint: Discuss your answer in terms of the median in the boxplot you created in Q5. Google “Interpreting boxplots in R” to find the information you need.

• Out of the two stocks the typical yearly return is higher for Apple than it is for Microsoft. The median for Apple is also higher than the median for Apple.

Q7 Which of the two stocks is expected to be riskier?

Hint: Discuss your answer in terms of the interquartile range (the middle 50%) of the boxplot you created in Q5.

• The boxplot in Apple has a higher interquartile range which allows for more of a leverage from yearly returns. Whereas in Microsoft the boxplot that is being displayed shows a much smaller interquartile range. With this being said Apple’s data shows 50% of the median in the past compared to Microsoft which means that Microsoft would be riskier to invest in.

Q8. Hide both the code and the results of the code on the webpage.

Hint: Change echo and results in the chunk options. The published webpage should display charts.

Q9. Display the title and your name correctly at the top of the webpage.

Q10. Use the correct slug.