1. Calculate the excess returns for S&P500 and the 5 shares.

2. Estimate the covariance and correlation matrix of the returns.

3. Why are Exxon, Bp and Shell strongly correlated?

Answer:________

4. Which company is riskiest considering the volatiliy of returns as a risk measure?

Answer:__________

5. Estimate the CAPM (beta) for Shell.

beta:___________

6. Which company offers the highest risk premium?

answer:_____

7. On 1/20/2023, are the 5 shares under, over, or fairly priced?

exxon:____

bp:____

shell:____

tesla:____

jpm:____