Finance

Question 1: 

Prepare a four to six-page report that describes how useful, if at all, the information available at the World Bank website (www.worldbank.org) is in terms of helping you understand the following as a market for cell phones:

a) United Kingdom

b) South Korea

c) Australia

d) Argentina

Question 2:

Pick two stocks, say Walmart and IBM. Look at their monthly closing prices for last 4 years and

· a. Calculate Beta for each of them

· b. Using the CAPM model, calculate the expected return for each. Assume a market risk premium of 8% and risk free rate of 4%.

· c. Calculate the standard deviation for each stock

· d. Calculate the correlation coefficient between the two stocks

· e. Form portfolios of the two stocks by changing their weights between zero and hundred percent and measure the risk and return of those portfolios

· f. Using excel, graph the efficient frontier.