I have to construct and evaluate portfolio of bonds and stocks, namely I need to get return on portfolio, standard deviation and sharpe ratios. I have weekly data that contains stock prices, and I could find only one source of weekly data for the bonds. It's from Federal Reserve Economic Data, weekly Yields on Moody's AAA bonds (long-term bonds, 20-30 years to maturity) in percentages. My problem is that I have no idea how to transform weekly yields into the form comparable to stocks' weekly returns. Can anyone give me some advise on it? The data looks like this:
- week1 7.44
- week2 7.43
- week3 7.40
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