The stock we are studying is Berkshire Hattaway. Go to yahoo.com and download five years of the monthly prices (It is easy in Yahoo to download prices) of the stock that you have chosen into an Excel file. Also download 5 years of monthly data for SPY, the S&P 500 prices (SPY is the ETF for S&P 500) for the same period into your Excel spreadsheet. You have two columns, one column 5 years of stock price, another 5 years of SPY price.

A. Estimate the monthly return of your chosen stock and the S&P 500. You need to create two more columns using this formula: (P1-P0)/P0 for each month return.

B. Estimate average monthly return for both the stock and the S&P500. (Average of 5 years monthly returns of step 1)

C. Estimate the standard deviation of monthly returns of the stock and the S&P500 over the past 5 years.

D. Among these two investments (One your chgosen stock, and the S&P500 or SPY) which investment has the highest total risk?

E. Among these two investments which investment has the Highest Systematic risk?

Note: You must write the summary of your findings in the discussion window and attach the Excel file to support your answers in the discussion window. You need to do all estimations in Excel and attach your Excel file.