1. Using monthly data for the last 5 years calculate the average monthly returns and standard deviations for the two stocks in your portfolio, Three-month Treasury Bill, and S&P 500.

2. Use the market model to estimate the beta for the two stock you select by using the last 5 years risk premiums. Then, estimate the annual required return for each stock based on CAPM using the estimated betas, the average market risk premium and the average risk-free rate.

3. What is your portfolio beta and expected portfolio return? (You can assign the weight for each stock as you like.)

Stock A

2018-07-01	45.463856
2018-08-01	54.385090
2018-09-01	54.122692
2018-10-01	52.473156
2018-11-01	42.815765
2018-12-01	37.951195
2019-01-01	40.044350
2019-02-01	41.658722
2019-03-01	45.896694
2019-04-01	48.486916
2019-05-01	42.301319
2019-06-01	48.006603
2019-07-01	51.674057
2019-08-01	50.631073
2019-09-01	54.531597
2019-10-01	60.567390
2019-11-01	65.069283
2019-12-01	71.711739
2020-01-01	75.584900
2020-02-01	66.756752
2020-03-01	62.247086
2020-04-01	71.918648
2020-05-01	77.827843
2020-06-01	89.540314
2020-07-01	104.326248
2020-08-01	126.691673
2020-09-01	113.907471
2020-10-01	107.071640
2020-11-01	117.094238
2020-12-01	130.735321
2021-01-01	130.016068
2021-02-01	119.473709
2021-03-01	120.530418
2021-04-01	129.717010
2021-05-01	122.957794
2021-06-01	135.373611
2021-07-01	144.170532
2021-08-01	150.071396
2021-09-01	140.070587
2021-10-01	148.286728
2021-11-01	163.630157
2021-12-01	176.032745
2022-01-01	173.266891
2022-02-01	163.690506
2022-03-01	173.318909
2022-04-01	156.484299
2022-05-01	147.739441
2022-06-01	135.908463
2022-07-01	161.545380
2022-08-01	156.286774
2022-09-01	137.570496
2022-10-01	152.641541
2022-11-01	147.355713
2022-12-01	129.552719
2023-01-01	143.871017
2023-02-01	146.981964
2023-03-01	164.672226
2023-04-01	169.445618
2023-05-01	177.005173
2023-06-01	184.919998
2023-06-16	184.919998

Stock B

Date	Adj Close
2018-07-01	60.862999
2018-08-01	60.909500
2018-09-01	59.673500
2018-10-01	53.838501
2018-11-01	54.721500
2018-12-01	51.780499
2019-01-01	55.818501
2019-02-01	55.995998
2019-03-01	58.665501
2019-04-01	59.424000
2019-05-01	55.181499
2019-06-01	54.045502
2019-07-01	60.834000
2019-08-01	59.404999
2019-09-01	60.950001
2019-10-01	63.005501
2019-11-01	65.248001
2019-12-01	66.850998
2020-01-01	71.711502
2020-02-01	66.966499
2020-03-01	58.140499
2020-04-01	67.432999
2020-05-01	71.445999
2020-06-01	70.680496
2020-07-01	74.148003
2020-08-01	81.709000
2020-09-01	73.480003
2020-10-01	81.050499
2020-11-01	88.037003
2020-12-01	87.594002
2021-01-01	91.787003
2021-02-01	101.843002
2021-03-01	103.431503
2021-04-01	120.505997
2021-05-01	120.578003
2021-06-01	125.316002
2021-07-01	135.220993
2021-08-01	145.462006
2021-09-01	133.265503
2021-10-01	148.270493
2021-11-01	142.451996
2021-12-01	144.679504
2022-01-01	135.698502
2022-02-01	134.891006
2022-03-01	139.649506
2022-04-01	114.966499
2022-05-01	114.039001
2022-06-01	109.372498
2022-07-01	116.639999
2022-08-01	109.150002
2022-09-01	96.150002
2022-10-01	94.660004
2022-11-01	101.449997
2022-12-01	88.730003
2023-01-01	99.870003
2023-02-01	90.300003
2023-03-01	104.000000
2023-04-01	108.220001
2023-05-01	123.370003
2023-06-01	124.059998
2023-06-16	124.059998

3-Month Treasury Bill Secondary Market Rate, Discount Basis, Percent, Monthly, Not Seasonally Adjusted

Date	Adj Close
2018-07-01	1.985000
2018-08-01	2.055000
2018-09-01	2.150000
2018-10-01	2.278000
2018-11-01	2.308000
2018-12-01	2.300000
2019-01-01	2.340000
2019-02-01	2.383000
2019-03-01	2.328000
2019-04-01	2.368000
2019-05-01	2.293000
2019-06-01	2.035000
2019-07-01	2.030000
2019-08-01	1.933000
2019-09-01	1.770000
2019-10-01	1.498000
2019-11-01	1.540000
2019-12-01	1.505000
2020-01-01	1.510000
2020-02-01	1.230000
2020-03-01	0.030000
2020-04-01	0.090000
2020-05-01	0.128000
2020-06-01	0.135000
2020-07-01	0.083000
2020-08-01	0.095000
2020-09-01	0.085000
2020-10-01	0.083000
2020-11-01	0.075000
2020-12-01	0.065000
2021-01-01	0.048000
2021-02-01	0.035000
2021-03-01	0.013000
2021-04-01	0.003000
2021-05-01	0.008000
2021-06-01	0.040000
2021-07-01	0.040000
2021-08-01	0.040000
2021-09-01	0.028000
2021-10-01	0.048000
2021-11-01	0.048000
2021-12-01	0.033000
2022-01-01	0.173000
2022-02-01	0.288000
2022-03-01	0.493000
2022-04-01	0.808000
2022-05-01	1.030000
2022-06-01	1.600000
2022-07-01	2.298000
2022-08-01	2.860000
2022-09-01	3.180000
2022-10-01	3.975000
2022-11-01	4.253000
2022-12-01	4.260000
2023-01-01	4.570000
2023-02-01	4.710000
2023-03-01	4.585000
2023-04-01	4.923000
2023-05-01	5.248000
2023-06-01	5.065000

Last 5 year stock closing price for SP500

Frequency: Monthly
observation_date	SP500
2018-06-01	2718.37
2018-07-01	2816.29
2018-08-01	2901.52
2018-09-01	2913.98
2018-10-01	2711.74
2018-11-01	2760.17
2018-12-01	2506.85
2019-01-01	2704.10
2019-02-01	2784.49
2019-03-01	2834.40
2019-04-01	2945.83
2019-05-01	2752.06
2019-06-01	2941.76
2019-07-01	2980.38
2019-08-01	2926.46
2019-09-01	2976.74
2019-10-01	3037.56
2019-11-01	3140.98
2019-12-01	3230.78
2020-01-01	3225.52
2020-02-01	2954.22
2020-03-01	2584.59
2020-04-01	2912.43
2020-05-01	3044.31
2020-06-01	3100.29
2020-07-01	3271.12
2020-08-01	3500.31
2020-09-01	3363.00
2020-10-01	3269.96
2020-11-01	3621.63
2020-12-01	3756.07
2021-01-01	3714.24
2021-02-01	3811.15
2021-03-01	3972.89
2021-04-01	4181.17
2021-05-01	4204.11
2021-06-01	4297.50
2021-07-01	4395.26
2021-08-01	4522.68
2021-09-01	4307.54
2021-10-01	4605.38
2021-11-01	4567.00
2021-12-01	4766.18
2022-01-01	4515.55
2022-02-01	4373.94
2022-03-01	4530.41
2022-04-01	4131.93
2022-05-01	4132.15
2022-06-01	3785.38
2022-07-01	4130.29
2022-08-01	3955.00
2022-09-01	3585.62
2022-10-01	3871.98
2022-11-01	4080.11
2022-12-01	3839.50
2023-01-01	4076.60
2023-02-01	3970.15
2023-03-01	4109.31
2023-04-01	4169.48
2023-05-01	4179.83
2023-06-01	#N/A

Beta is often estimated by linear regression. A model commonly used is called the market model, which is: Rt Rft = i + i [RMt Rft] + t

Please help so I can understand this please thank you, I will make sure to upvote you.