Assignment
Length: 4 pages.
Pick two stocks, say Walmart and IBM (don't use these 2 companies this is just for example) Look at their monthly closing prices for last 4 years and
• Calculate Beta for each of them.
• Using the CAP.M. model, calculate the expected return for each. Assume a market risk premium of 8% and risk free rate of 4%.
• Calculate the standard deviation for each stock.
• Calculate the correlation coefficient between the two stocks.
• Form portfolios of the two stocks by changing their weights between zero and one hundred percent and measure the risk and return of those portfolios
• Using excel, graph the efficient frontier.
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.