examine the relationship between risk and return of two stocks over time and present your findings asa formal written report(detailing your calculations and findings).

Which stockshould I invest in?
You have been asked by your client to recommend which of two available stocks will perform better over time, relative to risk. In this assignment, you examine the relationship between risk and return of two stocks over time and present your findings asa formal written report(detailing your calculations and findings).
The objectives of this assignment are to

1. (i) let you practise quantitative analysis commonly undertaken by business-degree graduates at work;
2. (ii) learn how and when to use different quantitative methods covered in the last 6 weeks.

This is ateamwork assignment, worth 15% of the total assessment. This assignment is based on topics including; Sampling and Estimation, Hypothesis Testing, and Regression Analysis.

• Use theas a guide when working on your assignment.

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Variables and data sources
P_S&P= Standard and Poor’s price index of 500 companies (S&P500)
http://finance.yahoo.com/quote/^gspc/history?p=^gspc
This variable is measured in US dollars. You will use it as amarket portfolio, and will hence use the return generated from this variable (R_S&P) as the market returnR_M= R_S&P.
P_MSFT= Microsoft Corporation’s stock price (MSFT)