Question: Below is the link for data file. The spreadsheet contains daily returns on 2 different stocks and the S&P/ASX200. The S&P/ASX200 is a proxy for

Below is the link for data file. The spreadsheet contains daily returns on 2 different stocks and the S&P/ASX200. The S&P/ASX200 is a proxy for the market portfolio. The daily returns are total returns and incorporate price changes and dividend payments. As the annual risk-free rate is very close to zero and you are using daily data, we can assume that the daily risk-free rate is zero.

https://1drv.ms/x/s!AihCZ6SIsHbSayErESTCnH42_kk?e=q0vAm9

1) How has total risk, systematic risk and idiosyncratic risk changed for each stock? What do you think has caused these changes for the two stocks?

2) Did the alpha and beta estimates from 2019 provide a reasonable prediction of stock returns in 2020 for the two stocks you are analysing? Why or why not?

3) Your discussion of the above points needs to incorporate relevant qualitative information on the two stocks from your own research.

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