Pick two stocks, say Apple and Citigroup. Look at their monthly closing prices for last year on Yahoo Finance and: a. Estimate Beta for each of them. b. Using the CAPM model, calculate the expected return for each. Assume a market risk premium of 8% and risk free rate of 4%. c. Calculate the standard deviation for each stock.

APPLE INC

Year,. Average Stock Price, Year Open, Year High, Year Low, Year Close, Annual % Change

2017, 147.8062, 113.0082, 174.4212, 112.8817, 167.3126, 48.48%.

CITIGROUP

YEAR, OPEN , CLOSE, ANNUAL RETURN

2017, 18.86, 26.54, 40.72 %