Background: The worksheet titled Dataset for Investments Case contains the annual returns for the S&P 500 and the 10-year Treasury bond yield over the period 1928-2018. The last column of the worksheet provides the annual return earned on the equity of Wal-Mart Inc.

Perform the quantitative analyses and discuss your results, as described below. Turn in one worksheet with multiple pages (three pages so that each part has a separate page). Also turn in a Word document with your key results excerpted in tables along with the requested discussion.

Part 1:

Using the methods shown in unit 1, calculate the mean, median and standard deviation for the returns/yields shown for the S&P 500 Index, T-Bond yield, and Wal-Mart Inc. Put your results in a table in the Word document. Interpret your results and make comparisons among the three assets.

Part 2:

Using the methods shown in Unit 2, calculate the covariance and correlation between the S&P 500 and the 10-year T-bond. Develop three portfolios of these securities using the following weights: equally-weighted, 60% (S&P) / 40% (T-Bond), and 70% (S&P) / 30% (T-Bond). Calculate the expected return and standard deviation of each portfolio weighting. Put your results in a table in the Word document. Interpret your results.

Part 3:

Using the methods shown in Unit 2, calculate the Beta for Wal-Mart using the S&P 500 as the market index. Calculate the expected return on Wal-Mart using the CAPM (and the Beta you estimate for Wal-Mart). For the risk-free rate and the market return, use the mean values that you calculated for the S&P 500 and the 10-year Treasury-Bond in Part 1. Put your results in a table in the Word document. Interpret your results.

NM WOT N WE LUXE N 1 TORT R R NM WOT N WE LUXE N 1 TORT R R