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Q- Select two companies - large or mid-caps - from any country of your choice...

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Finance

Q- Select two companies - large or mid-caps - from any country of your choice and estimate their daily returns for at least 5 years of data. Also, estimate the daily return on the country's stock index for the same duration.

a. Plot the histograms (with a bin size of 0.1% or lower) of daily returns of the two stocks and the index and comment on the riskiness of the three assets, i.e., comment on their standard deviations as well as the skewness.

b. Construct an equally weighted portfolio of the two stocks and plot a histogram of the daily return of that portfolio. What changes do you observe?

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