Question: Help Please... The relevant data sets are provided to you at the bottom of this sheet, regarding two competitor stocks: China Eastern Airlines (CEA) and

 Help Please... The relevant data sets are provided to you at

Help Please...

the bottom of this sheet, regarding two competitor stocks: China Eastern Airlines(CEA) and China Southern Airlines (ZNH). Based on the given data, you

The relevant data sets are provided to you at the bottom of this sheet, regarding two competitor stocks: China Eastern Airlines (CEA) and China Southern Airlines (ZNH). Based on the given data, you shall calculate the following measures to answer the following questions: 1) If each of these two stocks is considered stand-alone only, what is the "coefficient of variation" over the past decade for each stock's return, respectively? 2) If portfolio diversification strategies are feasible, what shall be the long-term expected return in market equilibrium (determined by the CAPM) for each stock, respectively? 3) Based on your findings in 1) and 2), what shall be the market-risk-adjusted excess return ("Alpha") for each stock, respectively? 4) Based on all above findings: Over the past 5 years, if each stock is stand-alone only, which stock has performed relatively better (i.e., with a more favorable risk-return tradeoff)? If each stock is combined with other stocks in portfolio, which stock has performed relatively better (i.e., with a more favorable risk-return tradeoff)?CEA stock prices, monthly, 12/2015-11/2020 ZNH stock prices, monthly, 12/2015-11/2020 CEA Historical Beta [SY monthly) ZNH Historical Beta (5Y monthly) 0.85 1.80 Date Adj Close Date Adj Close 12/1/15 $26.60 12/1/15 $35.83 1/1/16 $22.83 1/1/16 $28.14 5&P 500 stock return, 1928-2019 annual avg. US T-bond return, 1928-2019 annual avg. 2/1/16 $22.29 2/1/16 $26.56 11.57% 5.15% 3/1/16 $25.20 3/1/16 $29.34 4/1/16 $24.95 4/1/16 $28.97 5/1/16 $25.42 5/1/16 $27.81 6/1/16 $23.95 6/1/16 $26.75 7/1/16 7/1/16 $31.75 3/1/16 $24.52 8/1/16 $28.65 9/1/16 $21.90 9/1/16 $26.97 10/1/16 $21.37 10/1/16 $26.91 11/1/16 $23.04 11/1/16 $27.53 12/1/16 $21.48 12/1/16 $24.63 1/1/17 $24.17 1/1/17 $27.75 2/1/17 $26.54 2/1/17 $31.26 3/1/17 $27.48 3/1/17 $25.13 4/1/17 $31.32 5/1/17 $28.21 5/1/17 $36.74 6/1/17 $29.41 6/1/17 $39.67 $26.89 7/1/17 $37.19 8/1/17 $26.72 8/1/17 $37.65 $23.77 9/1/17 $33.52 10/1/17 $24.78 10/1/17 $36.07 11/1/17 $28.70 11/1/1 $43.86 12/1/1 $35.15 12/1/17 $50.54 $43.69 1/1/18 $63.10 2/1/1 $41.15 2/1/18 $64.48 $35.79 3/1/18 $51.33 $39.5 4/1/18 $52.73 $38.22 5/1/18 $48.06 /1/18 $33.21 6/1/18 $38.55 $30.54 7/1/18 $35.10 8/1/1 $31.40 8/1/18 $32.94 $31.37 9/1/18 $31.70 10/1/18 $27.64 10/1/18 $27.11 11/1/1 $30.89 11/1/18 LG'EES 12/1/18 $26.91 12/1/18 $30.04 /1/19 $30.33 1/1/18 $35.49 2/1/1 $31.5 2/1/15 $40.01 3/1/1 $33.77 3/1/1 $43.05 4/1/1 $33.81 4/1/15 $42.54 5/1/1 $26.94 5/1/15 $31.51 6/1/1 $28.91 6/1/19 $33.94 7/1/1 $27.00 7/1/15 $32.38 8/1/1 $23.19 8/1/15 $28.22 9/1/19 $23.72 9/1/19 $30.05 10/1/19 $24.31 10/1/19 $30.93 11/1/15 $24.91 11/1/19 $31.44 12/1/19 $26.90 12/1/15 $33.60 1/1/2 $22.40 1/1/20 $27.61 2/1/20 $21.05 2/1/20 $26.78 3/1/20 $17.09 3/1/20 $21.72 4/1/20 $19.38 4/1/20 $25.17 5/1/20 $17.08 5/1/20 $20.84 6/1/20 $17.81 6/1/20 $22.09 7/1/20 $17.41 7/1/20 $22.94 8/1/20 8/1/20 $26.21 9/1/20 $21.60 9/1/20 $27.19 10/1/20 $19.65 10/1/20 $26.82 11/1/20 $20.89 11/1/20 $28.60

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