IN CLASS: exxon and bp HOMEWORK: all stocks 1. Calculate the excess returns for S&P500 and the 5 shares. 2. Estimate the covariance and correlation matrix of the returns. 3. Why are Exxon, Bp and Shell strongly correlated? Answer:________ 4. Which company is riskiest considering the volatiliy of returns as a risk measure? Answer:__________ 5. Estimate the CAPM (beta) for Shell. beta:___________ 6. Which company offers the highest risk premium? answer:_____ 7. On 1/20/2023, are the 5 shares under, over, or fairly priced? exxon:____ bp:____ shell:____ tesla:____ jpm:____