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1) Produce full risk-returns analysis for the 5 year period for Market 1, Market 2 and the Company (excluding CAPM analysis). Visualize your analysis in (1) and discuss the results.

2) Based on correlations matrix, which benchmark for the Market is better suited for application to this Company? Justify your answer

3) Using two methods (direct slope function and beta definition formula) calculate betas for the Company based on market 1 and market 2 benchmarks. Assume: risk-free rate is 2%. What is the Capital Market Line equation for the Company based on Market 1 and on Market 2?

4) Briefly, explain why the choice of a benchmark matters to our risk-return analysis?

	Market 1	Market 2	Company
1-Jan-16	1,940.24	1035.38001	89.129997
1-Feb-16	1,932.23	1033.90002	85.150002
1-Mar-16	2,059.74	1114.03003	93.800003
1-Apr-16	2,065.30	1130.84998	94.220001
1-May-16	2,096.95	1154.79004	99.470001
1-Jun-16	2,098.86	1151.92004	95.790001
1-Jul-16	2,173.60	1219.93994	97.860001
1-Aug-16	2,170.95	1239.91003	102.309998
1-Sep-16	2,168.27	1251.65002	108.540001
1-Oct-16	2,126.15	1191.39002	107.510002
1-Nov-16	2,198.81	1322.33997	102.809998
1-Dec-16	2,238.83	1357.13001	102.949997
1-Jan-17	2,278.87	1361.81995	113.379997
1-Feb-17	2,363.64	1386.68005	118.339996
1-Mar-17	2,362.72	1385.92004	130.130005
1-Apr-17	2,384.20	1400.43005	133.740005
1-May-17	2,411.80	1370.20996	141.860001
1-Jun-17	2,423.41	1415.35999	141.440002
1-Jul-17	2,470.30	1425.14002	146.490005
1-Aug-17	2,471.65	1405.28003	155.160004
1-Sep-17	2,519.36	1490.85999	149.179993
1-Oct-17	2,575.26	1502.53003	175.160004
1-Nov-17	2,647.58	1544.14002	181.470001
1-Dec-17	2,673.61	1535.51001	175.240005
1-Jan-18	2,823.81	1574.97998	199.759995
1-Feb-18	2,713.83	1512.44995	209.130005
1-Mar-18	2,640.87	1529.43005	216.080002
1-Apr-18	2,648.05	1541.88001	221.600006
1-May-18	2,705.27	1633.60999	249.279999
1-Jun-18	2,718.37	1643.06995	243.809998
1-Jul-18	2,816.29	1670.80005	244.679993
1-Aug-18	2,901.52	1740.75	263.51001
1-Sep-18	2,913.98	1696.56995	269.950012
1-Oct-18	2,711.74	1511.41003	245.759995
1-Nov-18	2,760.17	1533.27002	250.889999
1-Dec-18	2,506.85	1348.56006	226.240005
1-Jan-19	2,704.10	1499.42004	247.820007
1-Feb-19	2,784.49	1575.55005	262.5
1-Mar-19	2,834.40	1539.73999	266.48999
1-Apr-19	2,945.83	1591.20996	289.25
1-May-19	2,752.06	1465.48999	270.899994
1-Jun-19	2,941.76	1566.56995	294.649994
1-Jul-19	2,980.38	1574.60999	298.859985
1-Aug-19	2,926.46	1494.83997	284.51001
1-Sep-19	2,976.74	1523.37	276.25
1-Oct-19	3,037.56	1562.44995	277.929993
1-Nov-19	3,140.98	1624.5	309.529999
1-Dec-19	3,230.78	1668.46997	329.809998
1-Jan-20	3,225.52	1614.06006	351.140015
1-Feb-20	2,954.22	1476.43005	345.119995
1-Mar-20	2,584.59	1153.09998	318.23999
1-Apr-20	2,912.43	1310.66003	353.640015
1-May-20	3,044.31	1394.04004	386.600006
1-Jun-20	3,100.29	1441.37	435.309998
1-Jul-20	3,271.12	1480.43005	444.320007
1-Aug-20	3,500.31	1561.88001	513.390015
1-Sep-20	3,363.00	1507.68994	490.429993
1-Oct-20	3,269.96	1538.47998	447.100006
1-Nov-20	3,621.63	1819.81995	478.470001
1-Dec-20	3,756.07	1974.85999	500.119995
1-Jan-21	3,714.24	2,012.95	503.352987

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