Question: 3. Choose two stocks each from a different industry. a. Create a data file for both stocks with price and return data collated with

3. Choose two stocks each from a different industry. a. Create a data file for both stocks with price and return data collated with the risk factors from Kenneth French's database. b. Determine the average return, and the total risk for each stock. c. Which stock has the highest expected return and which one has the highest risk? d. Calculate the systematic risk after running CAPM, three factor and four factor models. Compare and contrast these for both the stocks. e. How do the calculated return values compare to the actual return? Can you estimate this? If yes, how? If no, why not?

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