1) Microsoft and Verizon Below are the hypothetical daily percentage returns for the two companies- Microsoft and Verizon and the Market : Find the geometric average returns for each.

2)Find the standard deviation of the returns for the two companies.

3)Find the standard deviation for the portfolio of the two companies. (With stocks weights being: 70% msft and 30 % Verizon)

4)Calculate Beta for the two companies. (As demonstrated in the class: Run a regression or use the formula using covariance of each stock with the market divided by the variance of market).

5)Which of the companies is more risky in terms of Beta.

6)Which of the companies is more risky in terms of standard deviation?

7)Does portfolio of the two companies show lower standard deviation than individual stock company standard deviations?

8) Calculate the expected return using CAPM for each company.

I ONLY WANT HELP ON QUESTION 8 PLEASE.

MSFT 4 Verizon 5 3 3 2 4 6 7 Market 4 6 3 7 2 9 4 7 2 1 6 8 4 2 7 9 4 1 1 6 1 3 2 8 4 6 2 00 W N 00 6 MSFT 4 Verizon 5 3 3 2 4 6 7 Market 4 6 3 7 2 9 4 7 2 1 6 8 4 2 7 9 4 1 1 6 1 3 2 8 4 6 2 00 W N 00 6