focus on two public companies, JPMorgan Chase & Co. (JPM) and Apple Inc. (AAPL). The historical information for the price is available online from January 1^st, 2019, to January 1^st, 2021 (the Market Insider website or other sources such as Yahoo Finance). Download the historical daily share prices for this horizon. Select the S&P500 index as a measure of the market for this horizon and download historical daily prices for this index as well. To be able to calculate the risk-free rate, we need the yield of US treasury bonds with the same duration of 2 years. Note that the yield reported for treasury bonds is an annual rate of return, so you must calculate the daily risk-free rate.

1. Calculate the arithmetic average daily return on the stocks of the companies for the horizon. Calculate the variance and standard deviation of the return on the stocks of the companies as well. Based on your answers and selecting the standard deviation as the measure of risk, does higher risk, higher return hold? Discuss. Also, calculate the correlation coefficient between the returns of two stocks using Excel.
2. Assume that CAPM holds. Based on the given information, calculate the beta for each of the two stocks. Based on the returns calculated in the previous part, and selecting the beta as the measure of risk, does higher risk, higher return hold? Discuss.

		Portfolio
		X	Y	Z
Weights	AAPL	0.5	0.25	0.6
	JPM	0.5	0.75	0.4