I don't want the previous answers on CHEGG. Please do a separate one. You can attach the screenshot of Excel with the formulas and workings.

You must prepare a short (maximum 2 pages single-sided) executive summary that summarizes your analysis and addresses the questions that are given. You must also prepare an Excel file with the solution. You need to submit both the Excel file and the executive summary (word or pdf document).

Chevron and Coca Cola

Go to finance.yahoo.com and download the ending monthly stock prices for Chevron (CVX), and Coca Cola (KO) for the specified time period (TIME PERIOD: February 28, 2017 February 28, 2022). Use the adjusted closing price, which adjust for dividend payments and stock splits.

Data: Go to finance.yahoo.com and search for the companies using their ticker symbols (CVX and KO) and then click on the Historical Data on the menu. Set Time Period as February 28, 2017 February 28, 2022, choose Monthly for frequency and use Adj Close prices.

Questions

1. Calculate monthly returns for Chevron and Coca Cola for this period.
2. Calculate the average return, variance, and standard deviation of returns for each firm. (Use

Excels AVERAGE, VAR and STDEV functions.)

3. Which stock is riskier if held on its own? Why?
4. Assume that you held an equally weighted portfolio of Chevron and Coca Cola (i.e., a portfolio with

equal dollar investments in each stock). Compute the portfolios rate of return for each month,

and calculate the variance and standard deviation of the portfolios monthly rate of return.

5. Is the portfolio standard deviation more or less than the average of the standard deviations of the

two component stock?

6. What are the betas provided by finance.yahoo.com for each firm? Which stock has more

systematic risk?