Project Part (technical analysis)
In project part 5, you will create an index of the growth of a dollar using the portfolio P0 you created. Using this index, you will calculate historical moving averages and plot them on a graph.
Create an appendix table with the moving average data.
Create an appendix called "Appendix 3: Monthly Data for P0" that includes the following columns: Date: The end of month dates for the last 5 years
P0: The return for each month for portfolio P0
Growth of $1: An index you create by calculating the cumulative return from the beginning of the period. 3 month MA: The moving average price of the preceding 3 months
6 month MA: The moving average price of the preceding 6 months
1 year MA: The moving average price of the preceding 1 year (12 months) 3 year MA: The moving average price of the preceding 3 years (36 months)
The index you create in the "Growth of $1" column is essentially the price of an investment as it grows from the beginning of your time period if no withdrawals are made. Use this price to calculate your moving averages.
Create a figure that plots the data from appendix 3.
Create a table called "Figure 3: 5 Year Growth of a Dollar with Moving Averages" that displays the data in the previous section. In excel, the easiest way to accomplish this is with a "line chart". Use the dates on the "x-axis".
Plot each line successively on the figure and observe the relationship between the lines.
Attachment:- Project Technical Analysis.rar