Please answer the questions on the attachment below. For the 1st question you can choose any stock or bond and look at their monthly prices, the stock can be seen from yahoo finance or any finance webpage

Assignment 1) Pick a security. Start by downloading historical monthly prices for your security. First calculate monthly return. Calculate the following for the monthly returns and report the results: 1. Mean, 2. Standard deviation, 3. Kurtosis, 4. Skewedness 5. 5% VaR, 6. Expected shortfall. 2) Consider a risky portfolio. The end of year cash flow derived from the portfolio is either $80,000 or $180,000 with equal probabilities of 0.5. The alternative risk free investment in T-Bill pays 6% per year. a. If you require a risk premium of 5% how much will you be willing to pay for the portfolio? b. Suppose that the portfolio can be purchased for the amount you found in part a. What will be the expected rate of return on the portfolio? c. Now suppose that you require a risk premium of 8%. What is the price that you will be willing to pay? What will be your rate of return? d. What can you conclude about the relationship between price and rate of return? 3) You manage a risky portfolio with expected rate of return of 9% and standard deviation of 20%. Risk free rate of return is 3%. a. What are the characteristics of feasible investment portfolios for your client? (what are the possible risk and return that you can create?) Identify this using a graph. What is this line called? b. A client of yours has a utility function of U=E(r)-4Var(r) and 10000 to invest. How much should you invest in the risk-free asset and how much in risky portfolio? What is the expected return and standard deviation of your client's portfolio