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.

2017 Year

147.8062 Average Stock Price

113.0082 Year Open

174.4212 Year High

112.8817 Year Low

167.3126 Year Close

48.48% Annual % Change

CITIGROUP

DATE OPEN CLOSE ANNUAL RETURN

2017

18.86

26.54

40.72 %