Part one 1:Risk and return (12 points) 1. Pick the companies Go to yahoo finance choose U.S companies which one company in the financial sector (bank), one industrial company one service and the index S&P500 get the adjusted closing price for the last 4 years starting Jan 1, 2015-Dec31, 2019 2. Use the excel to : calculate the average return of each stock the standard deviation of each stock calculate the covariance and correlation between each pair of stocks calculate beta for each stock one time using the beta equation and the second time using the regression Calculate the average return of a portfolio that consist of 30% banks, 20% service companies and 50% industrial companies What is the portfolio risk for a portfolio consist of 40% banks and 60% service companies Part one 1:Risk and return (12 points) 1. Pick the companies Go to yahoo finance choose U.S companies which one company in the financial sector (bank), one industrial company one service and the index S&P500 get the adjusted closing price for the last 4 years starting Jan 1, 2015-Dec31, 2019 2. Use the excel to : calculate the average return of each stock the standard deviation of each stock calculate the covariance and correlation between each pair of stocks calculate beta for each stock one time using the beta equation and the second time using the regression Calculate the average return of a portfolio that consist of 30% banks, 20% service companies and 50% industrial companies What is the portfolio risk for a portfolio consist of 40% banks and 60% service companies