ComputeStockReturnInformation onDisney (DIS) andCampbell Soup (CPB)and the S&P 500 for the 36 months ending December 2019(you need 37 observation points of adjusted closing prices to get 36 returns) (Using Excel)

a) Find the annualized Standard Deviation of returns from each of the stocks.Use adjusted monthly close values to get the returns.

Find the Beta of each stock over this time period. .

Find the Standard Deviation of a portfolio of equal portions of these 2 stocks. (2 ways).

b) Create the portfolio of minimum risk for DISand CPB.Show the proportion of funds in each stock and the std dev of the portfolio.

c) Using the BETA's from part A, calculate the expected r for each stock using the CAPM. Let the risk free rate be 2% and the Market risk premium be 7%.

d) Then plot the returns against the std deviation (like 8.3 in text) for the portfolios with varying amounts in DIS and CPB.

e) Then find the "most efficient" portfolio of all the portfolios of DIS and CPB.Describe how you found it.

To make the grading easier, make sure that the first observation date is January 1, 2017 and last is Jan 1, 2020

On 4a, be sure you do 2 ways so you catch any errors.

On 4b, you may use a derivative test to find the minimum (if you remember your calculus) or you may test many many proportions and just "observe" or you may use Excel techniques if you are familiar with any such techniques for finding a minimum.