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1. Download to a spreadsheet the last three years of monthly stock prices for Coca Cola {KG}, Citigroup [C], and Pfizer [PFE] from the website
1. Download to a spreadsheet the last three years of monthly stock prices for Coca Cola {KG}, Citigroup [C], and Pfizer [PFE] from the website [finance.yahoo.com}. a. Calculate the monthly returns. b. Calculate the monthly standard deviation of those returns and then use MS Excel STDEUS function to check your answers. c. Use the Excel function CCIHREL to calculate the correlation coefcient between the monthly returns for each pair of stocks {show in table format]. Which pair provides the greatest gain from diversification? d. Calculate the expected return, standard deviation of returns and beta for portfolios with different investments [ten combinations] in the three stocks. Interpret the results. Download to a spreadsheet the last ve years of monthly stock prices for each of the companies in Table 15 [Book example; except Dow Chemical] and for the Standard 3:. Foods Composite Index [5&P SUD]. a. Calculate the monthly returns. b. Make a histogram of monthly returns for each stock and comment on it. c. Calculate beta for each stock {manually}. Thereafter, check your results using the Excel function SLDPE, where the a y " range refers to the stock return {the dependent variable] and the H x " range is the market return {the independent variable, 5&P soc]. Make comments on betas. c. How have the betas changed from those reported in Table 15
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