Question 1: Below are the monthly returns for the stocks ABL and HHT as well as the returns on the market. ABL's returns: (-15.2%, -14%, 13.8%, -7.2%, -3.4%, 2.2%, 8.8%, -8.8%, -33.8%, 12.2%, -4.2%, 0.6%) HHT's returns: (2.6%, -1.3%, 7.9%, -1.4%, -2.2%, -2.6%, -4.4%, 0.9%, -9.5%, -4.5%, -2.9%, 20%) The market returns were: (0.2%, -3.7%, 6.9%, 1.8%, -1.4%, 3.2%, 0.6%, -4.8%, -3.3%, -0.4%, 0.2%, 8.1%) Using the information above, perform each of the following tasks: a) Compute the first four moments (mean, standard deviation, skew, kurtosis) for the returns for ABL [use stdev/skew/kurt in excel] b) Compute the geo-metric average return for HHT c) Compute the correlation between the returns of ABL and HTT d) Compute the standard deviation and Sharpe ratio for a portfolio that has 40% of funds invested in ABL and the remainder in HHT if the risk-free rate is 0.18% per year. e) Find the beta for ABL and HHT. Which stock of the two is more defensive? Question 1: Below are the monthly returns for the stocks ABL and HHT as well as the returns on the market. ABL's returns: (-15.2%, -14%, 13.8%, -7.2%, -3.4%, 2.2%, 8.8%, -8.8%, -33.8%, 12.2%, -4.2%, 0.6%) HHT's returns: (2.6%, -1.3%, 7.9%, -1.4%, -2.2%, -2.6%, -4.4%, 0.9%, -9.5%, -4.5%, -2.9%, 20%) The market returns were: (0.2%, -3.7%, 6.9%, 1.8%, -1.4%, 3.2%, 0.6%, -4.8%, -3.3%, -0.4%, 0.2%, 8.1%) Using the information above, perform each of the following tasks: a) Compute the first four moments (mean, standard deviation, skew, kurtosis) for the returns for ABL [use stdev/skew/kurt in excel] b) Compute the geo-metric average return for HHT c) Compute the correlation between the returns of ABL and HTT d) Compute the standard deviation and Sharpe ratio for a portfolio that has 40% of funds invested in ABL and the remainder in HHT if the risk-free rate is 0.18% per year. e) Find the beta for ABL and HHT. Which stock of the two is more defensive