Choose 5 risky assets and give reasons for your choice. Download historical price information from Yahoo Finance (use ‘adjusted close’ prices for the basis of the computation).

Choose 5 risky assets and give reasons for your
choice. Download historical price information from Yahoo Finance (use ‘adjusted
close’ prices for the basis of the computation).

·      
Plot
the daily share prices and daily returns for each individual asset;

·      
Compute
the sample mean, variance, and standard deviation of the logarithmic or linear
returns of these shares (in annual terms);

·      
Compute
the corresponding variance-covariance matrix V for the returns;

·      
Perform
linear regression on your data using an appropriate index as proxy for the
market portfolio, and find the alpha, beta, and noise coefficients;

·      
Perform
the two graphical tests suggested in the lecture notes (compute histograms and
scatter plots of the returns for appropriately chosen times) to assess whether
returns are indeed (at least approximately) market invariants. Discuss your
findings;