Download the monthly adjusted closing prices from 0112 2014-0112 2021 for 2. companies of your choice from finance yahoo.com. The selected companies must be from different industries. 1) Return and Risk Measures Compute the following vantables for both stocks monthly stock return average monthly stock retum standard deviation/Excel Fonction STDEV Find the annualized standard deviation by multiplying by the square root of 12, as well as covariance / Excel Function=COVARO correlation/Excel Function=CORRELO between both stocks Choose a third company to include in your analysis. Use the Excel function CORREL to calculate the correlation coeficient between the monthly returns for each pair of stocks. Which pair provides the greatest gain from diversification? Calculate the standard deviation of returns for a portfolio with equal investments in the three stocks 2) Two-Stock Portfolio Build a portfolio of two stocks from part (1) with a weight of 70% for company and a weight of 30% for company 2 and compute. the monthly portfolio return the average monthly portfolio return the portfolio variance and volatility (standard deviation) Design your own Excel file from scratch and use Excel formulas to calculate all of the above Intepret and explain your findings! This question will be sent to your instructor for grading. Download the monthly adjusted closing prices from 01.12.2014 - 0112 2021 for 2 companies of your choice from firiance yahoo.com. The selected companies must be from different industries. 1) Return and Risk Measures Compute the following variables for both stocks monthly stock return average monthly stock retum standard deviation/Excel Function STDEV. Find the annualized standard deviation by multiplying by the square root of 12. as well as covariance/Excel Function -COVARO correlation/Excel Punction -CORRELO between both stocks Choose a third company to include in your analysis. Use the Excel function CORREL to calculate the correlation coefficient between the monthly returns for each pair of stocks which pair provides the greatest gain from diversification? Calculate the standard deviation of returns for a portfolio with equal investments in the three stocks 2) Two-Stock Portfolio Bulid a portfolio of two stocks from part { with a weight of 70% for company and a weight of 30% for company 2 and compute . the monthly portfolio return the average monthly portfolio return the portfolio variance and volatility standard deviation 1) Return and Risk Measures Compute the following variables for both stocks monthly stock return average monthly stock return standard deviation/Excel Function STDEV Find the annualized standard deviation by multiplying by the square foot of 12, as well as covariance/Excel Function -COVARO correlation/Excel Function CORRELO between both stocks Choose a third company to include in your analysis. Use the Excel function CORREL to calculate the correlation coefficient between the monthly returns for each pair of stocks, which pair provides the greatest gain from diversinction Calculate the standard deviation or returns for a portfolio with equal investments in the three stocks 2) Two-Stock Portfolio Build a portfolio of two stocks from party with a weight of 70% for company and a weight of 30% for company 2 and compute the monthly portfolio return the average monthly portfolio retum the portfolio vanance and volatility standard deviation Design your own Excei file from scratch and use Excel formulas to calculate all of the above intepret and explain your findings! EN 40F Sunny A 11:59 A 1/23/20
