Reference no: EM132914646

Problem - You are presented with the monthly stock prices of five (5) listed companies labeled Stock Prices. You are also presented with the market capitalization figures of these companies labelled MV. Note that columns for stock prices correspond with columns for capitalization. Data are for the period October 31, 1995 to October 31, 2005. In the following exercises, use the five (5) companies with complete data over the ten-year period. You will use excel throughout in these exercises. Allotted marks are indicated. Compute the holding period returns from the prices of the five stocks that you have selected and obtain the expected return and the risk of each stock. Plot a graph with the expected return on the vertical axis and risk on the horizontal axis. Assess if there is a risk return relationship in the five stocks selected.