subject is capital markets

everything is to be done in Excel and please state the assumptions if any

i badly need these above answers help me out

Q1. Please download and refer to the last one-year stock prices of HDFC bank, Infosys, and NIFTY and answer the following questions: a. Calculate the annualized stock returns and standard deviations of HDFC bank, Infosys, and NIFTY using the daily returns series. (3 marks) b. Which stock is riskier amongst HDFC bank and Infosys? Why? (2 marks) C. Estimate the systematic risk of HDFC bank and Infosys using NIFTY data and explain which stock has higher systematic risk? (use regression method and submit the excel file). (5 marks) d. Which stock provides a higher reward to risk (sharpe) ratio? Assume a risk-free rate of 7%. Is the sharpe ratio of two stocks higher or lower than NIFTY? d. Which stock provides a higher reward to risk (sharpe) ratio? Assume a risk-free rate of 7%. Is the sharpe ratio of two stocks higher or lower than NIFTY? Explain. (2 marks) e. Use Capital Asset Pricing Model (CAPM) to estimate the expected return of HDFC bank and Infosys. Which stock generated higher than expected return during the mentioned time period? (3 marks) f. Create a portfolio using HDFC bank and Infosys with weights of 40% and 60% respectively. What is the portfolio return and standard deviation? (3 marks) g. In what proportion can we combine the two stocks to achieve maximum sharpe ratio? Calculate the portfolio return and risk in that scenario? (Hint: Use solver to maximize the sharpe ratio of the portfolio and submit the excel file) (7 marks) 2. a. The price of futures contract of ICICI Bank expiring on 29-July-2021 is INR 625.10 (as on 20-May-2021). The stock price of ICICI Bank on 20-May-2021 is INR 619.40. Is the futures contract fairly priced? If not, how can a trader exploit the arbitrage opportunity? Assume a risk-free a rate of 6%. (5 Marks) a b. As on 20-May-2021, the price of call option on ICICI Bank with a strike price of INR 600 and expiry on 29-July-2021 is INR 79.50. The price of a put option with same strike price and expiry is INR 52.45. Does the put call parity hold true? If not, how can a trader exploit the arbitrage opportunity. Assume a risk-free rate of 6%. (5 Marks) 3. A 5-year 10% coupon bond is selling to yield 8%. The bond pays interest annually. The redemption value of the bond is at par. a. What is the price of the 5-year 10% coupon bond selling to yield 8%? (2 marks) Does the put call parity hold true? If not, how can a trader exploit the arbitrage opportunity. Assume a risk-free rate of 6%. (5 Marks) 3. A 5-year 10% coupon bond is selling to yield 8%. The bond pays interest annually. The redemption value of the bond is at par. a. What is the price of the 5-year 10% coupon bond selling to yield 8%? (2 marks) b. What is the price of this bond one year later assuming the yield is unchanged at 8%? (3 marks) c. What is the price of this bond if yield has increased from 8% to 12%? Also calculate the price of this bond one year later assuming the yield is 12%. (4 marks) d. Can you stablish a relationship between the price of the bond and the yield? Explain. (3 marks) e. Can you stablish a relationship among coupon rate, yield and price change of the bond? Explain. (3 marks) Q1. Please download and refer to the last one-year stock prices of HDFC bank, Infosys, and NIFTY and answer the following questions: a. Calculate the annualized stock returns and standard deviations of HDFC bank, Infosys, and NIFTY using the daily returns series. (3 marks) b. Which stock is riskier amongst HDFC bank and Infosys? Why? (2 marks) C. Estimate the systematic risk of HDFC bank and Infosys using NIFTY data and explain which stock has higher systematic risk? (use regression method and submit the excel file). (5 marks) d. Which stock provides a higher reward to risk (sharpe) ratio? Assume a risk-free rate of 7%. Is the sharpe ratio of two stocks higher or lower than NIFTY? d. Which stock provides a higher reward to risk (sharpe) ratio? Assume a risk-free rate of 7%. Is the sharpe ratio of two stocks higher or lower than NIFTY? Explain. (2 marks) e. Use Capital Asset Pricing Model (CAPM) to estimate the expected return of HDFC bank and Infosys. Which stock generated higher than expected return during the mentioned time period? (3 marks) f. Create a portfolio using HDFC bank and Infosys with weights of 40% and 60% respectively. What is the portfolio return and standard deviation? (3 marks) g. In what proportion can we combine the two stocks to achieve maximum sharpe ratio? Calculate the portfolio return and risk in that scenario? (Hint: Use solver to maximize the sharpe ratio of the portfolio and submit the excel file) (7 marks) 2. a. The price of futures contract of ICICI Bank expiring on 29-July-2021 is INR 625.10 (as on 20-May-2021). The stock price of ICICI Bank on 20-May-2021 is INR 619.40. Is the futures contract fairly priced? If not, how can a trader exploit the arbitrage opportunity? Assume a risk-free a rate of 6%. (5 Marks) a b. As on 20-May-2021, the price of call option on ICICI Bank with a strike price of INR 600 and expiry on 29-July-2021 is INR 79.50. The price of a put option with same strike price and expiry is INR 52.45. Does the put call parity hold true? If not, how can a trader exploit the arbitrage opportunity. Assume a risk-free rate of 6%. (5 Marks) 3. A 5-year 10% coupon bond is selling to yield 8%. The bond pays interest annually. The redemption value of the bond is at par. a. What is the price of the 5-year 10% coupon bond selling to yield 8%? (2 marks) Does the put call parity hold true? If not, how can a trader exploit the arbitrage opportunity. Assume a risk-free rate of 6%. (5 Marks) 3. A 5-year 10% coupon bond is selling to yield 8%. The bond pays interest annually. The redemption value of the bond is at par. a. What is the price of the 5-year 10% coupon bond selling to yield 8%? (2 marks) b. What is the price of this bond one year later assuming the yield is unchanged at 8%? (3 marks) c. What is the price of this bond if yield has increased from 8% to 12%? Also calculate the price of this bond one year later assuming the yield is 12%. (4 marks) d. Can you stablish a relationship between the price of the bond and the yield? Explain. (3 marks) e. Can you stablish a relationship among coupon rate, yield and price change of the bond? Explain