I have to do a financial assignment in Capital Markets. I had to download from Bloomberg the monthly Data for the period 2000-2015:

1. Monthly Price Data of several stocks

2. Price Data for the FTSE 350

3. Data on the 3-month interbank rate

Using Excel and the data I shall calculate:

a) The correlation coefficient between each security and the market b) The covariance between each possible pair of stocks using the single index model c) The average return on the market d) The variance of the market e) Compare and contrast the mean return, variance and covariance for each stock using 1. The single index model 2. The historical data

Below you find the data of 2000 for 2of the stocks, the Price Data for the FTSE350 and the Data on the 3- Month interbank rate. I cant send a question with the whole data because its too large. So you just need to show me in your solution how its done with this data and I can apply it to the whole data. Thank you.

	BATS LN Equity		BNZL LN Equity		NMX Index		BP0003M Index
Date	PX_LAST	Returns	PX_LAST	Returns	PX_LAST	Returns	PX_LAST	Returns
30.12.1999	351,75		337,594		3326,97		6,07844
31.01.2000	272,75	-22,46%	305,914	-9,38%	3036,9	-8,72%	6,22594	2,43%
29.02.2000	260,5	-4,49%	284,628	-6,96%	3042,5	0,18%	6,25375	0,45%
31.03.2000	345,25	32,53%	295,024	3,65%	3171,5	4,24%	6,25125	-0,04%
28.04.2000	388,25	12,45%	286,608	-2,85%	3063,4	-3,41%	6,365	1,82%
31.05.2000	391	0,71%	316,804	10,54%	3079,1	0,51%	6,27891	-1,35%
30.06.2000	441	12,79%	350,464	10,62%	3085,3	0,20%	6,22484	-0,86%
31.07.2000	400	-9,30%	385,115	9,89%	3119,1	1,10%	6,22625	0,02%
31.08.2000	443	10,75%	383,63	-0,39%	3266,6	4,73%	6,24625	0,32%
29.09.2000	437	-1,35%	375,214	-2,19%	3082,5	-5,64%	6,1775	-1,10%
31.10.2000	483	10,53%	391,055	4,22%	3139,9	1,86%	6,14563	-0,52%
30.11.2000	501	3,73%	424,715	8,61%	3001,7	-4,40%	6,03531	-1,80%
29.12.2000	509,75	1,75%	406,4	-4,31%	3043,6	1,40%	5,89906	-2,26%