The disk that accompanies this book gives 5 years of monthly price data for five U.S. stocks.

• Compute the monthly returns for the stocks.

• Compute the stocks’ average monthly returns and standard deviations.

• Compute the variance-covariance matrix for the stock returns.

• Compute the correlation matrix of returns for the stocks.

• Compute the lower-Cholesky matrix for the variance-covariance structure.