Choose two publicly traded stocks and fill in their tickers to cells B3 and B4 of FrontSheet.For your chosen stocks, work out the following tasks.1. On sheet Q1, compute the weekly returns of the chosen stocks over the last 150 weeks(prior to 22nd April 2024).2. For each stock, plot a histogram of its returns.3. Estimate the means, variances and the correlation of the two stocks. (If the computedcorrelation is 1 or -1, please choose a different set of stocks for all questions.)4. Calculate the value at risk of the returns at confidence level 95% of each stock.5. Plot the efficient frontier of a portfolio consisting of the two chosen stocks.6. Suppose that the weekly interest rate is 0.1%. Calculate the Sharpe ratio of this port-folio.7. How does the Sharpe ratio of such portfolio change if the weekly interest rate decreases?Justify your answer by numerical evidences.

To accomplish these tasks, we will need access to specific financial data and tools typically found…

Answered: Choose two publicly traded stocks and…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 9P

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