(a) [2] Convert these prices to monthly returns as the percentage change in the monthly prices. To do this, create a separate worksheet within the Excel file.

(b) [2] Compute the mean monthly returns and standard deviations for the monthly returns of each of the stocks. Convert the monthly statistics to annual statistics by multiplying the mean monthly return by 12 and the monthly standard deviation by .

(c) [2] Add a column in your Excel worksheet with the average return across stocks for each month. This is the monthly return to an equally weighted portfolio of these 12 stocks. Compute the mean and standard deviation of monthly returns for the equally weighted portfolio. Double check that the average return on this equally weighted portfolio is equal to the average return of all of the individual stocks. Convert these monthly statistics to annual statistics as described earlier.

(d) [2] Using the annual statistics, create an Excel plot with standard deviation (volatility) on the x-axis and average return on the y-axis.

(e) [2] What do you notice about the volatilities of the individual stocks, compared to the volatility of the equally weighted portfolio? Compare the volatility of the equally weighted portfolio (as measured by the annual standard deviation of returns) to the average volatility of the individual stocks. Note: In the Excel worksheet(s), format returns as percentages using two decimal places (format cells to ensure that 0.013257 is shown as 1.33%).

AAPL ADM BA C CAT DE FB HSY MSI PG SIRI WMT Date Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Dec/2014 25.18104 43.59034 112.812 48.7771 75.42521 77.64809 78.02 90.5335 59.60343 76.34609 3.390694 74.0074 Jan/2015 26.72777 39.0888 126.1693 42.32277 65.89919 75.26977 75.91 89.03518 55.75235 70.64674 3.439132 73.64094 Feb/2015 29.30564 40.13664 130.9255 47.26369 68.87381 80.0498 78.97 90.40281 60.69243 71.85825 3.768514 72.73104 Mar/2015 28.4983 39.97281 131.0629 46.45223 66.48941 77.47867 82.22 88.34351 59.5579 69.16557 3.7007 71.27519 Apr/2015 28.66321 41.22092 125.1769 48.07517 72.18043 80.52811 78.77 80.47303 53.65534 67.1144 3.82664 68.04186 May/2015 29.83814 44.56884 122.7142 48.76041 71.47184 83.33929 79.19 81.29597 52.98185 66.70123 3.739451 64.74655 Jun/2015 28.84733 40.87977 121.9186 49.8535 71.05298 86.33729 85.77 78.20789 51.49116 66.57362 3.613511 62.22508 Jul/2015 27.89748 40.20154 126.7085 52.75951 65.86769 84.67149 94.01 81.78242 54.33939 65.26323 3.836328 63.14623 Aug/2016 25.93339 38.00581 114.8524 48.3061 63.96499 73.22022 89.73 79.4493 58.06981 60.62476 3.7007 56.78598 Sep/2015 25.48245 35.35002 115.824 44.81051 55.25708 66.25453 89.9 81.41139 61.76408 61.71425 3.623199 57.27089 Oct/2015 27.60791 38.94046 130.9665 48.0261 61.70769 70.39299 101.97 78.58485 63.51281 65.52313 3.95258 50.55809 Nov/2015 27.33068 31. 11996 128.6491 48.90177 62.10667 71.80989 104.24 76.47602 65.15578 64.77906 3.981643 51.97131 Dec/2015 24.42216 31.51569 128.6792 46.78621 58.09728 68.83171 104.66 79.6477 62. 13308 68.73471 3.942893 54.14414 Jan/2016 22.58458 30.37295 106.9108 38.49579 53.20742 70.03851 112.21 78.61275 60.96846 70.7082 3.584448 59.10441 Feb/2016 22.43377 30.03787 105.1754 35.16692 59.3631 72.92155 106.92 81.09309 67.10458 70.10214 3.603824 59.0866 Mar/2016 25.4248 31.48245 114.0168 37.79199 67.11453 70.02032 114.1 82.69736 69.12255 71.86582 3.82664 61.00152 Apr/2016 21.86733 34.62981 121.0766 41.89252 68.14921 77.07259 117.58 83.61334 69.0544 69.9537 3.82664 59.99956 May/2016 23.29499 37.08357 113.3072 42.19962 64.20075 75.40485 118.81 83.37985 63.61747 71.33659 3.894454 63.50782 Jun/2016 22.43701 37.48646 117.6 38.41189 67.12257 74.25945 114.28 102.5735 60.58675 74.53195 3.82664 65.99738 Jul/2016 24.45775 39.40055 121.0319 39.69864 73.27615 71.74226 123.94 100.1061 64.10825 75.34181 4.252899 65.95219 Aug/2016 24.90132 38.24685 117.2197 43.41666 73.25794 78.05698 126.12 90.28166 71.14001 77.4581 4.010705 64.56935 Sep/2016 26.6762 37.10979 120.2819 42.95286 79.35459 78.79553 128.27 86.87573 70.48396 79.62279 4.03977 65.63018 Oct/2016 26.79182 38.3418 130.0422 44.69898 74.6078 82.11223 130.99 93.1097 67.42304 77.00566 4.03977 63.71914 Nov/2016 26.0792 38.04259 137.465 51.28333 86.17847 93.17831 118.42 87.82082 74.54806 73.72017 4.427278 64.09225 Dec/2016 27.47014 40.4631 144.3376 54.22677 83.63532 95.8193 115.05 94.58425 77.00049 75.16848 4.321464 62.90013 Jan/2017 28.78175 39.23103 151.5137 50.94196 86.26865 100.1265 130.32 96.44978 75.40443 78.31539 4.583664 61. 16897 Feb/2017 32.49124 41.63312 167.099 54.5735 87.89378 102.4087 135.54 99.08347 73.77882 82.06288 4.942977 65.00923 Mar/2017 34.22096 41.10457 165.3851 54.73887 84.34747 101.8194 142.05 100.4789 80.55225 80.96354 5.011796 66.06323 Apr/2017 34.21858 40.84566 172.8379 54.09833 92.98589 104.973 150.25 99.51322 80.78111 78.69278 4.817162 69.4111 May/2017 36.38865 37. 12267 175.4563 55.5456 96.66472 115.1778 151.46 106.0156 78.52598 79.98541 5. 109112 72.56868 Jun/2017 34.44832 37.22681 186.3353 61.36256 98.52595 116.2406 150.98 99.29401 81.50463 79.13191 5.334117 70.34034 Jul/2017 35.57491 37.94651 228.4645 62.80306 104.4764 121.248 169.25 97.38894 85.67446 82.46425 5.714428 74.34624 Aug/2017 39.22735 37.17283 225.8261 62.41769 108.4996 109.575 171.97 97.02828 83.25575 84.43813 5.451136 72.56171 Sep/2017 37.0089 38.53736 240.965 67.0482 115. 1672 118.7055 170.87 101.577 80.18518 83.25763 5.392503 73.0836 Oct/2017 40.59165 37.05063 244.5386 67.74873 125.4085 126.2099 180.06 98.79494 86.01243 79.01148 5.314351 81.66021 Nov/2017 41.26643 36.15314 262.3779 69.59224 131.1266 142.3376 177.18 103.2146 89.40389 82.96877 5.372965 90.93829 Dec/2017 40.78337 36.62903 281.0472 68.88245 146.3899 148.6537 176.46 106.2482 85.82242 84.7113 5.247008 92.35993 Jan/2018 40.34958 39.25191 337.7121 72.6501 151.2207 158.6666 186.89 103.2716 95.0123 79.60355 5.981197 100.7527 Feb/2018 42.9258 37.94504 345.1835 69.88221 144.3162 153.3752 178.32 91.97379 101.4031 72.94556 6.147613 85.07267 Mar/2018 40.59878 39.94551 314.0098 62.73925 137.5497 148.0838 159.79 93.25394 100.5911 73.65161 6.119638 84.08971 Apr/2018 39.989 41.7968 319.4495 63.45493 134.7312 129.5359 172 86.63872 105.4205 67.20432 6.207903 84.10614 May/2018 45.21811 40.26788 337.2626 61.98639 142.4914 143. 1087 191.78 84.84827 103.0304 68.60442 6.96305 78.47753 Jun/2018 44.96495 42.5321 322.9198 62.4945 127.2583 133.8145 194.32 88.32322 111.6979 73.18929 6.65045 81.9475 Jul/2018 46.22322 44.78724 342.9297 67.13583 134.8842 139.2804 172.58 93.21111 116.9652 75.83333 6.896035 85.37273 Aug/2018 55.29346 46.77325 329.9267 66.52882 131.0397 138.328 175.73 95.40351 123.7729 78.48 6.974622 91.71613 Sep/2018 55.02667 46.96766 359.713 67.41805 143.9125 144.6095 164.46 97.51083 125.4893 78.74493 6.218237 90.3723 Oct/2018 53.34959 44. 14605 343.2313 61.51639 114.4958 130.879 151.79 102.4342 118.67 83.90123 5.923068 96.50231 Nov/2018 43.53089 42.99686 335.3969 60.88676 128.8546 149.6644 140.61 103.5335 127.0842 90.20718 6.129687 93.97139 Dec/2018 38.58507 38.56152 313.3722 49.26041 120.6866 144. 1467 131.09 103.1502 111.3887 87.7351 5.628781 89.64091 Jan/2019 40.71318 42.26049 374.7057 60.99357 126.4707 159.3024 166.69 102.1108 113.6969 92.07795 5.747075 92.7232 Feb/2019 42.35453 40.00158 427.5077 60.53939 131.2799 159.3413 161.45 106.5186 139. 1865 94.80722 5.845652 95.78075 Mar/2019 46.66329 40.93372 372.4866 59.28793 129.5115 155.2616 166.69 111.2382 136.5607 100.0984 5.600761 94.36809 Apr/2019 49.29677 42.32886 368.8439 67.36831 133.2681 161.662 193.4 120.9448 141.4993 102.4361 5.739052 100.0414 May/2019 43.00785 36.36866 333.6089 59.22123 115.2176 136.812 177.47 127.8324 146.4207 99.70054 5.245156 98.67945 Jun/2019 48.80844 39.05833 357.5266 67.15942 131.0659 161.7401 193 130.5548 162.8057 106.2303 5.523407 108.0541 Jul/2019 52.53714 39.32639 335.1032 68.2431 126.6229 162.4246 194.23 147.8056 162.6285 114.3587 6.196511 107.9466 Aug/2019 51.47673 36.42572 357.6052 61.71224 115.3192 151.8938 185.67 154.3708 177.2784 117.2347 6.107423 111.741 Sep/2019 55.44241 39.68742 376.0253 66.74639 122.4031 165.3956 178.08 151.71 166.9892 121.2813 6.208704 116.6349 Oct/2019 61.57902 40.62477 335.9391 69.43248 133.5377 171.5327 191.65 143.7619 163.5452 121.4081 6.664935 117.0477 Nov/2019 66.15611 41.48481 361.9022 72.58236 141.3557 165.5339 201.64 145.0245 164.5089 119.7794 6.922804 117.0378 Dec/2019 72.9095 45.15654 323.8333 77.74297 144.237 170.6659 205.25 144.6192 158.4516 122.5663 7.105035 116.7921 AAPL ADM BA C CAT DE FB HSY MSI PG SIRI WMT Date Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Adi Close Dec/2014 25.18104 43.59034 112.812 48.7771 75.42521 77.64809 78.02 90.5335 59.60343 76.34609 3.390694 74.0074 Jan/2015 26.72777 39.0888 126.1693 42.32277 65.89919 75.26977 75.91 89.03518 55.75235 70.64674 3.439132 73.64094 Feb/2015 29.30564 40.13664 130.9255 47.26369 68.87381 80.0498 78.97 90.40281 60.69243 71.85825 3.768514 72.73104 Mar/2015 28.4983 39.97281 131.0629 46.45223 66.48941 77.47867 82.22 88.34351 59.5579 69.16557 3.7007 71.27519 Apr/2015 28.66321 41.22092 125.1769 48.07517 72.18043 80.52811 78.77 80.47303 53.65534 67.1144 3.82664 68.04186 May/2015 29.83814 44.56884 122.7142 48.76041 71.47184 83.33929 79.19 81.29597 52.98185 66.70123 3.739451 64.74655 Jun/2015 28.84733 40.87977 121.9186 49.8535 71.05298 86.33729 85.77 78.20789 51.49116 66.57362 3.613511 62.22508 Jul/2015 27.89748 40.20154 126.7085 52.75951 65.86769 84.67149 94.01 81.78242 54.33939 65.26323 3.836328 63.14623 Aug/2016 25.93339 38.00581 114.8524 48.3061 63.96499 73.22022 89.73 79.4493 58.06981 60.62476 3.7007 56.78598 Sep/2015 25.48245 35.35002 115.824 44.81051 55.25708 66.25453 89.9 81.41139 61.76408 61.71425 3.623199 57.27089 Oct/2015 27.60791 38.94046 130.9665 48.0261 61.70769 70.39299 101.97 78.58485 63.51281 65.52313 3.95258 50.55809 Nov/2015 27.33068 31. 11996 128.6491 48.90177 62.10667 71.80989 104.24 76.47602 65.15578 64.77906 3.981643 51.97131 Dec/2015 24.42216 31.51569 128.6792 46.78621 58.09728 68.83171 104.66 79.6477 62. 13308 68.73471 3.942893 54.14414 Jan/2016 22.58458 30.37295 106.9108 38.49579 53.20742 70.03851 112.21 78.61275 60.96846 70.7082 3.584448 59.10441 Feb/2016 22.43377 30.03787 105.1754 35.16692 59.3631 72.92155 106.92 81.09309 67.10458 70.10214 3.603824 59.0866 Mar/2016 25.4248 31.48245 114.0168 37.79199 67.11453 70.02032 114.1 82.69736 69.12255 71.86582 3.82664 61.00152 Apr/2016 21.86733 34.62981 121.0766 41.89252 68.14921 77.07259 117.58 83.61334 69.0544 69.9537 3.82664 59.99956 May/2016 23.29499 37.08357 113.3072 42.19962 64.20075 75.40485 118.81 83.37985 63.61747 71.33659 3.894454 63.50782 Jun/2016 22.43701 37.48646 117.6 38.41189 67.12257 74.25945 114.28 102.5735 60.58675 74.53195 3.82664 65.99738 Jul/2016 24.45775 39.40055 121.0319 39.69864 73.27615 71.74226 123.94 100.1061 64.10825 75.34181 4.252899 65.95219 Aug/2016 24.90132 38.24685 117.2197 43.41666 73.25794 78.05698 126.12 90.28166 71.14001 77.4581 4.010705 64.56935 Sep/2016 26.6762 37.10979 120.2819 42.95286 79.35459 78.79553 128.27 86.87573 70.48396 79.62279 4.03977 65.63018 Oct/2016 26.79182 38.3418 130.0422 44.69898 74.6078 82.11223 130.99 93.1097 67.42304 77.00566 4.03977 63.71914 Nov/2016 26.0792 38.04259 137.465 51.28333 86.17847 93.17831 118.42 87.82082 74.54806 73.72017 4.427278 64.09225 Dec/2016 27.47014 40.4631 144.3376 54.22677 83.63532 95.8193 115.05 94.58425 77.00049 75.16848 4.321464 62.90013 Jan/2017 28.78175 39.23103 151.5137 50.94196 86.26865 100.1265 130.32 96.44978 75.40443 78.31539 4.583664 61. 16897 Feb/2017 32.49124 41.63312 167.099 54.5735 87.89378 102.4087 135.54 99.08347 73.77882 82.06288 4.942977 65.00923 Mar/2017 34.22096 41.10457 165.3851 54.73887 84.34747 101.8194 142.05 100.4789 80.55225 80.96354 5.011796 66.06323 Apr/2017 34.21858 40.84566 172.8379 54.09833 92.98589 104.973 150.25 99.51322 80.78111 78.69278 4.817162 69.4111 May/2017 36.38865 37. 12267 175.4563 55.5456 96.66472 115.1778 151.46 106.0156 78.52598 79.98541 5. 109112 72.56868 Jun/2017 34.44832 37.22681 186.3353 61.36256 98.52595 116.2406 150.98 99.29401 81.50463 79.13191 5.334117 70.34034 Jul/2017 35.57491 37.94651 228.4645 62.80306 104.4764 121.248 169.25 97.38894 85.67446 82.46425 5.714428 74.34624 Aug/2017 39.22735 37.17283 225.8261 62.41769 108.4996 109.575 171.97 97.02828 83.25575 84.43813 5.451136 72.56171 Sep/2017 37.0089 38.53736 240.965 67.0482 115. 1672 118.7055 170.87 101.577 80.18518 83.25763 5.392503 73.0836 Oct/2017 40.59165 37.05063 244.5386 67.74873 125.4085 126.2099 180.06 98.79494 86.01243 79.01148 5.314351 81.66021 Nov/2017 41.26643 36.15314 262.3779 69.59224 131.1266 142.3376 177.18 103.2146 89.40389 82.96877 5.372965 90.93829 Dec/2017 40.78337 36.62903 281.0472 68.88245 146.3899 148.6537 176.46 106.2482 85.82242 84.7113 5.247008 92.35993 Jan/2018 40.34958 39.25191 337.7121 72.6501 151.2207 158.6666 186.89 103.2716 95.0123 79.60355 5.981197 100.7527 Feb/2018 42.9258 37.94504 345.1835 69.88221 144.3162 153.3752 178.32 91.97379 101.4031 72.94556 6.147613 85.07267 Mar/2018 40.59878 39.94551 314.0098 62.73925 137.5497 148.0838 159.79 93.25394 100.5911 73.65161 6.119638 84.08971 Apr/2018 39.989 41.7968 319.4495 63.45493 134.7312 129.5359 172 86.63872 105.4205 67.20432 6.207903 84.10614 May/2018 45.21811 40.26788 337.2626 61.98639 142.4914 143. 1087 191.78 84.84827 103.0304 68.60442 6.96305 78.47753 Jun/2018 44.96495 42.5321 322.9198 62.4945 127.2583 133.8145 194.32 88.32322 111.6979 73.18929 6.65045 81.9475 Jul/2018 46.22322 44.78724 342.9297 67.13583 134.8842 139.2804 172.58 93.21111 116.9652 75.83333 6.896035 85.37273 Aug/2018 55.29346 46.77325 329.9267 66.52882 131.0397 138.328 175.73 95.40351 123.7729 78.48 6.974622 91.71613 Sep/2018 55.02667 46.96766 359.713 67.41805 143.9125 144.6095 164.46 97.51083 125.4893 78.74493 6.218237 90.3723 Oct/2018 53.34959 44. 14605 343.2313 61.51639 114.4958 130.879 151.79 102.4342 118.67 83.90123 5.923068 96.50231 Nov/2018 43.53089 42.99686 335.3969 60.88676 128.8546 149.6644 140.61 103.5335 127.0842 90.20718 6.129687 93.97139 Dec/2018 38.58507 38.56152 313.3722 49.26041 120.6866 144. 1467 131.09 103.1502 111.3887 87.7351 5.628781 89.64091 Jan/2019 40.71318 42.26049 374.7057 60.99357 126.4707 159.3024 166.69 102.1108 113.6969 92.07795 5.747075 92.7232 Feb/2019 42.35453 40.00158 427.5077 60.53939 131.2799 159.3413 161.45 106.5186 139. 1865 94.80722 5.845652 95.78075 Mar/2019 46.66329 40.93372 372.4866 59.28793 129.5115 155.2616 166.69 111.2382 136.5607 100.0984 5.600761 94.36809 Apr/2019 49.29677 42.32886 368.8439 67.36831 133.2681 161.662 193.4 120.9448 141.4993 102.4361 5.739052 100.0414 May/2019 43.00785 36.36866 333.6089 59.22123 115.2176 136.812 177.47 127.8324 146.4207 99.70054 5.245156 98.67945 Jun/2019 48.80844 39.05833 357.5266 67.15942 131.0659 161.7401 193 130.5548 162.8057 106.2303 5.523407 108.0541 Jul/2019 52.53714 39.32639 335.1032 68.2431 126.6229 162.4246 194.23 147.8056 162.6285 114.3587 6.196511 107.9466 Aug/2019 51.47673 36.42572 357.6052 61.71224 115.3192 151.8938 185.67 154.3708 177.2784 117.2347 6.107423 111.741 Sep/2019 55.44241 39.68742 376.0253 66.74639 122.4031 165.3956 178.08 151.71 166.9892 121.2813 6.208704 116.6349 Oct/2019 61.57902 40.62477 335.9391 69.43248 133.5377 171.5327 191.65 143.7619 163.5452 121.4081 6.664935 117.0477 Nov/2019 66.15611 41.48481 361.9022 72.58236 141.3557 165.5339 201.64 145.0245 164.5089 119.7794 6.922804 117.0378 Dec/2019 72.9095 45.15654 323.8333 77.74297 144.237 170.6659 205.25 144.6192 158.4516 122.5663 7.105035 116.7921