Using the Reuters EIKON terminal, download the daily historical prices $($adjusted for dividend payments and stock splits$)$ of two companies from the same country last five years $($December$,2018$ November $2023).$ In an Microsoft Excel sheet,

a$)$ Calculate the daily percentage returns $($R $=($P$1$ P$0)/$P$0).$

b$)$ Calculate the daily logarithmic returns for each stock $($R $=$ log$($P$1/$P$0).$

c$)$ Calculate the standard deviation of daily returns $($that you calculated in part b$)$ for each stock.

d$)$ Calculate the covariance and the correlation coefficient between these two stocks.

e$)$ Form ten different portfolios using the following weights and the correlation coefficients that you have calculated in part d:

weight of the first stock $=\{1,0\mathrm{.}9,0\mathrm{.}8,0\mathrm{.}7,0\mathrm{.}6,0\mathrm{.}5,0\mathrm{.}4,0\mathrm{.}3,0\mathrm{.}2,0\mathrm{.}1,0\}$

weight of the second stock $=\{0,0\mathrm{.}1,0\mathrm{.}2,0\mathrm{.}3,0\mathrm{.}4,0\mathrm{.}5,0\mathrm{.}6,0\mathrm{.}7,0\mathrm{.}8,0\mathrm{.}9,1\}$

f$)$ Plot the expected return and standard deviation of each portfolio that you have calculated in part f

g$)$ Repeat the exercises in part e and f by assuming that the correlation between the two stocks is equal to $1$

h$)$ Repeat the exercises in part e and f by assuming that the correlation between the two stocks is equal to $-1.$

Make sure the graphs that you have constructed in part f$,$ g$,$ and h are on the same plot.