YOU CAN SUBMIT AN EXCEL FILE FOR THIS ASSIGNMENT Calculate the monthly returns of the stocks of the following companies from January 2014 to May 2020. Yahoo Finance provides monthly returns! Use the prices given under "adjusted close" to avoid dividend and split issues. IBM Tesla 1. (50 points) What is the monthly expected return and the standard deviation of a portfolio that is composed of (x% IBM and y% Tesla), where {x,y | x%+y%=100%, x,y in {0,100}}* *i.e. do not have negative weights, only positive weights. Have at least 100 expected value and standard deviation combinations calculated and plot the "opportunity set". 2. (30 points) What is the composition (the weights of the assets) of a portfolio that is formed by investing in IBM and Tesla stocks and that has the lowest standard deviation? (That is, what is the weight of each stock in the lowest standard deviation portfolio...among all possible combinations, not only among the ones you calculated in question 1). You are expected to solve this question analytically. 3. (20 points) You have $10,000. What is the expected value and the standard deviation of a portfolio that is formed by investing $5K at the risk free rate and $5K on the portfolio you found in question 2 (assume that monthly risk free rate is 0.0025%)? Does there exist another portfolio consisting of these assets AND that has a higher expected return and lower risk, measured by standard deviation? If there is, describe that portfolio with one sentence, do not calculate it. Date Adi Close (Te Adj Close (IBM) 12/1/13 10.028667 116.788345 Mo 1/1/14 12.094 110.00782 2/1/14 16.320667 115.294029 3/1/14 13.896667 120.508804 4/1/14 13.859333 123.000496 5/1/14 13.851333 115.418991 6/1/14 16.004 114.14521 7/1/14 14.886667 120.694084 8/1/14 17.98 121.09079 9/1/14 16.178667 120.242348 10/1/14 16.113333 104.134453 11/1/14 16.301332 102.721909 12/1/14 14.827333 102.32164 1/1/15 13.573333 97.774445 2/1/15 13.556 103.278275 3/1/15 12.584667 103.077957 4/1/15 15.07 110.007622 5/1/15 16.719999 6/1/15 17.884001 105.25576 108.954376 7/1/15 17.743334 104.822197 8/1/15 16.604 95.698227 9/1/15 16.559999 94.587463 10/1/15 13.795333 91.396935 11/1/15 15.350667 90.966301 12/1/15 16.000668 90.634148 1/1/16 12.746667 82.184525 2/1/16 12.795333 86.29409 3/1/16 15.318 100.761162 4/1/16 16.050667 97.095291 5/1/16 14.882 102.284691 6/1/16 14.152 101.955238 7/1/16 15.652667 107.893295 8/1/16 14.134 106.72448 9/1/16 13.602 107.625931 10/1/16 13.182 104.129822 11/1/16 12.626667 109.909187 12/1/16 14.246 113.483757 1/1/17 16.795334 119.315544 2/1/17 16.666 122.939056 3/1/17 18.553333 119.997116 4/1/17 20.938 110.453316 5/1/17 22.733999 105.174904 6/1/17 24.107332 107.037315 7/1/17 21.564667 100.663643 8/1/17 23.726667 99.522514 9/1/17 22.74 102.015541 10/1/17 22.101999 108.329948 11/1/17 20.59 108.266685 12/1/17 20.756666 108.958221 1/1/18 23.620667 116.259033 2/1/18 22.870667 110.6698 3/1/18 17.742001 110.038208 4/1/18 19.593332 5/1/18 103.963608 18.982 101.34584 6/1/18 22.863333 101.303398 7/1/18 19.875999 105.095917 8/1/18 20.110666 106.219894 9/1/18 17.651333 110.834518 10/1/18 22.488001 84.608322 11/1/18 23.365334 91.087906 84.37944 12/1/18 22.186666 20.468 99.782585 1/1/19 2/1/19 21.325333 102.536583 3/1/19 18.657333 105.961632 4/1/19 15.912667 105.338333 5/1/19 12.344 95.365463 6/1/19 14.897333 104.788658 7/1/19 16.107332 112.645897 8/1/19 15.040667 102.987717 9/1/19 16.058001 111.805038 10/1/19 20.994667 102.817261 11/1/19 21.996 103.370827 12/1/19 27.888666 1/1/20 104.272812 43.371334 111.810875 2/1/20 44.532665 101.246696 3/1/20 34.933334 87.196098 4/1/20 52.125332 98.695969 5/1/20 55.666668 98.177193