Copy your R Code and plots to the answers.

According to the CAPM formula, we will first get the beta of each stock by regres$-$

sions; then calculate the expected return of each stock and the covariance matrix

of the stocks; finally we can calculate the optimal asset allocations $($weights$)$ of the

portfolio consisting of the $2$ stocks.

$($a$)$ Take two stocks from BIST$100$ and get the daily price data for them for any $2$

years period and calculate the returns

$($b$)$ Get the index prices and returns of market data $($which is BIST$100)$ for the

same period.

$($c$)$ Calculate the $$ for each stock using the CAPM Formula. For simplicity, take

the risk$-$free rate as $0.$ Comment on the $$ of each asset.

$($d$)$ Forecast the next day return $($the day after your data ends$)$ of the assets by

using the CAPM formula.