An Internet Connected Financial Calculator
Journal of Accounting and Finance, Forthcoming
Posted: 29 Sep 2012
Date Written: September 28, 2012
When discussing the meaning of β in Finance 101, I hope that I could punch a few keys on my calculator to show students IBM’s β in 2010. When explaining Sharpe ratio, I dream that I could download the price data for DELL and the risk-free rate, then calculate the ratio. When talking about the weekday effect, how about showing students the stock mean returns on Monday and Tuesday for Microsoft? What an impact if I could plot an efficient portfolio formed by 23 stocks chosen by my 23 students! Here is a nice substitute: R. In this short paper, I demonstrate how to accomplish above tasks easily by calling my R programs. For instance, calling Beta(“IBM”, 2006, 2010, “m”) will offer an IBM’s β based on 5-year publicly available monthly prices. Mastering R is not easy. But calling prewritten R programs is no more difficult than learning how to use a financial calculator.
Keywords: internet connected financial calculator, R software, open source, open data, Yahoo finance
JEL Classification: G00, G19, G14
Suggested Citation: Suggested Citation