Finance problem
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Get it written →Please go to Yahoo! Finance (http://finance.yahoo.com) and download any two stocks daily stock prices in 2019. Please complete this question in Excel and upload the Excel file with all formulas.
a.Calculate their daily returns in 2019;
b.Estimate the average return, return variance, and return volatility for both stocks;
c.Estimate the correlation between these two stocks;
d.Construct a portfolio consisting of 50% of each stock. Whats the portfolios Sharpe ratio? Compare it to the Sharpe ratio of each stock.
(Hint: you can use the 1-year T-bill rate, or any other similar treasury rate from various sources, as an approximation of the risk-free rate.)
e.Finally, find the betas of the two stocks from Yahoo! Finance. What are the expected returns of the two stocks and the portfolio, assuming a risk-free rate of 1% and an expected market return of 8%?
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