Goal

Collect individual returns into a portfolio by assigning a weight to each stock

Choose your stocks.

from 2012-12-31 to 2017-12-31

1 Import stock prices

2 Convert prices to returns (quarterly)

3 Assign a weight to each asset (change the weigting scheme)

## [1] "AMZN" "GOOG" "NFLX"
## [1] 0.4 0.3 0.3
## # A tibble: 3 × 2
##   symbols weights
##   <chr>     <dbl>
## 1 AMZN        0.4
## 2 GOOG        0.3
## 3 NFLX        0.3

4 Build a portfolio

## # A tibble: 20 × 2
##    date       portfolio.returns
##    <date>                 <dbl>
##  1 2013-03-28           0.273  
##  2 2013-06-28           0.0801 
##  3 2013-09-30           0.160  
##  4 2013-12-31           0.224  
##  5 2014-03-31          -0.0831 
##  6 2014-06-30           0.0630 
##  7 2014-09-30           0.00531
##  8 2014-12-31          -0.126  
##  9 2015-03-31           0.144  
## 10 2015-06-30           0.184  
## 11 2015-09-30           0.141  
## 12 2015-12-31           0.208  
## 13 2016-03-31          -0.0912 
## 14 2016-06-30           0.0193 
## 15 2016-09-30           0.120  
## 16 2016-12-30           0.0222 
## 17 2017-03-31           0.142  
## 18 2017-06-30           0.0657 
## 19 2017-09-29           0.0716 
## 20 2017-12-29           0.122

## 5 Plot: Portfolio Histogram and Density

What return should you expect from the portfolio in a typical quarter? A typical return in a quarter from this portfolio would be somewhere on and around the 12-13% mark.