Take real data on the daily stock prices for the stocks of two companies for one year

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Take real data on the daily stock prices for the stocks of two companies for one year from, say, http://finance.yahoo.com or another similar site. Considering a particular utility function, for instance, u(x) = −e−0.001·x, determine which company is better for an EU maximizer with this utility function. (Advice: Look at the comment in Exercise 5. To estimate the expected value E{u(X)}, where X is a random return, we can use the usual estimate 1/n [E{u(X1)}+ ...+E{u(Xn)}], where {X1, ...,Xn} is the time series based on the data. Excel is convenient for such calculations.) Add to your analysis the characteristics considered. Try to describe the performance of the companies, taking into account all characteristics you computed.

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