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Q 1 . As a broker, you are approached by a client who wants to invest money in energy or oil & gas stocks. The

Q1. As a broker, you are approached by a client who wants to invest money in energy or oil & gas stocks. The only information you have available to advise your client is the stock price indexes for energy only is in natural logarithm inserted on the following table:
\table[[,Stock Price Index,,,Return,Daily Volatility],[Date,ENERGY,OIL&GAS,,,Energy,OIL&GAS,ENERGY,&GAS],[Monday,19.62,105.20,,,,,,],[Tuesday,19.69,115.80,,,,,,],[Wednesday,19.75,116.28,,,,,,],[Thursday,20.35,115.92,,,,,,],[Friday,20.05,125.02,,,,,,],[Monday,19.98,135.20,,,,,,],[,,,,,,,,],[Average,,,,,,,,],[stdev,,,,,,,,],[correlation,0.91,,,,,,,],[covariance,0.65,,,,,,,]]
Your client is particularly interested in:
a) The daily return for each stock
b) The average daily return
c) The relative risk associated to each stock
d) The daily volatility of each stock
e) The average daily volatility
f) In which stock should investment money be invested?
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