2. You want to form a portfolio between two stocks: Netflix, Inc, and Baidu, Inc. Download the monthly closing price data from Yahoo!. Finance pages for Netflix, Inc (ticker symbol: NFLX) and Baidu, Inc (ticker symbol: BIDU) from January 2017 to December 2022. Calculate the monthly returns for each stock in MS Excel using the adjusted closing prices. Use this data and Excel to answer the following questions:

a. What is the average monthly return and standard deviation of returns for NFLX?

b. What is the average monthly return and standard deviation of returns for BIDU?

c. Find the correlation between NFLX and BIDU.

d. Does the risk-return relationship (trade-off) hold between these two stocks?

e. Use these values, calculate the portfolio return and standard deviation for various weights in NFLX and BIDU:

i. Calculate the portfolio return and standard deviation for weights with alternatively 0%, 5%, 10%, 15%..., 95%, 100% weights in NFLX and the rest of BIDU.

ii. Graph this portfolio return and standard deviation for all possible portfolios on a graph with Return on the vertical axis and Standard deviation on the horizontal axis (hint: Use a Scatter Plot graph).