Select any 20 stocks from NSE "Nifty". Download their prices from 1^st October, 2016 to 30^th September, 2019. From the price data sheet, use only the closing price of the day. Perform data normalization (edit data for price changes due to issue of bonus share and/or share split besides taking care of missing dates). Show all the Dates, 20 Stocks prices (whichever was selected) and Nifty Index on a single EXCEL worksheet. Label it as "Master Data".

Now, in additional different EXCEL worksheets, do the following computations:

(a)Calculate for each one of the 20 individual stock and the Index - Expected Return (using log normal returns) and Risk (Look up your book / material / web for how to calculate them). Compile all the 21 risks and returns in a single table.

(b)Calculate Beta of each of the individual 20 stocks w.r.t. the Market Index (NIFTY) [The Beta of the reference market index is always taken as 1]. Tabulate the 20 Betas and sort them in decreasing order. Divide the list in two parts with first 10 as "High Betas" and next 10 as "Low Betas" and Comment on your results.

(c)Form two portfolios based on 10 high and 10 low beta stocks. Call them "Portfolio Beta-H" and "Portfolio Beta-L". Adopt equal weightage (1/10 or 10%) for computing the portfolio return for "Portfolio Beta-H" and "Portfolio Beta-L" based on 10 stocks each. [Use Separate EXCEL Sheets for each Portfolio computation]. Compare the risk and return profiles of these two portfolios and state your interpretation.

(d)Finally, answer, which of the two portfolios was found to be superior and Why? Use Sharpe Ratio and Rf = 6% for your answer.