Download stock price data from

yahoo.com.

a$.$ Use a monthly frequency.

b$.$ Use the most recent two years of data.

c$.$ Download the index value for the SPY $($the proxy for the market portfolio$).$

d$.$ Download data for $3$ companies. Please select companies that are mature and have been around for a long time $($for example, Exxon, Disney, etc.$).$

Download T$-$bill data from the Federal Reserve Bank of St$.$ Louis $($FRED$)$

a$.$ Use the $3-$Month Treasury Bill: Secondary Market Rate as a proxy for the riskfree rate.

b$.$ Make sure you convert this annual rate to a monthly rate $($just divide by $12).$

Calculate the monthly returns, variances, and sigma $($std$.$ deviations$)$ for the S&P $500$ and the three companies you selected.

Please provide a small discussion on what you observed from the $3$ companies, the SPY$,$ and the T$-$bill rate over the sample period. What did you see in terms of the returns, risk, etc.?

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