Question: Based on the tasks explained below, write a report of no more than 2000 words. Note that share price data is available from Yahoo Finance

Based on the tasks explained below, write a report of no more than 2000 words. Note that share price data is available from Yahoo Finance and further financial data should be available online.

The tasks and their marks distribution are as follows: 1. Carry out a risk and return analysis of 20 stocks taken at random from the FTSE 100 and analyze as follows:

a. Construct a risk and return profile of each of the twenty stocks over the last 5 years based on monthly observations (e.g. use the search box on this page click here). 20 Marks

b. Evaluate your results and recommend stocks for a prospective investor who is:

i. Risk Averse: Investor would like to invest in Low risk stocks. So, identify which stock are low risk among your selected 20 stocks.

ii. Risk Aggressive: Investor would like to invest in High risk stocks. So, identify which stock are High risk among your selected 20 stocks.

Note: The criterion for identifying stock as low risk or high risk is AVERAGE STANDARD DEVIATION of all stocks. In Question 1.a. you will calculate individual standard deviation, you can take Average of these all-standard deviations. The assumption here is that you equally invest all 20 stocks.

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