Problem $1(60$ points total; $5$ points for each part$)$ You have been hired as an equity analyst and your boss has asked you to do some analysis to help create a stock portfolio that you can sell to clients. Use the information in the associated Excel file $($from Yahoo Finance$)$ to help you answer questions A$-$L$.$ Note: you need to turn in your Excel file to receive full credit for this problem, and you don$$t need to rewrite your answers in the Word file below. Assume that the risk$-$free rate is $0\mathrm{.}1\%$ per month and that the Excel data is representative of what to expect going forward. Hint: First use the $$Adj Close$$ values beginning in March $2014$ to help you construct monthly returns $($this is the stock price adjusted for dividends and stock splits$).$ This is a complex problem $$ if necessary, watch the video that I$$ve posted to guide you through this problem. a$)$ What is the return over the sample for JPM and CMG $($From close on March $2014$ to close on February $2019)?$ b$)$ What is the expected monthly return for JPM and CMG$?$ c$)$ What is the standard deviation for JPM and CMG$?$ d$)$ Which stock would you pick $($if you had to pick only one$)$ given answers a$-$c$?$ Why? e$)$ What is the covariance between JPM returns and CMG returns? f$)$ What is the correlation between JPM returns and CMG returns? Is this high or low? g$)$ What are the risky portfolio weights in JPM and CMG for the tangency portfolio $($highest Sharpe Ratio$)?($Hint: There are two ways to do this. One is to use the clunky formula in the slides. The other is to use solver to maximize the Sharpe ratio by adjusting the weights of the stocks.$)$ h$)$ What is the expected monthly return for this risky portfolio? i$)$ What is the monthly standard deviation for this risky portfolio? Now consider adding the risk$-$free asset to your portfolio. j$)$ If you have a risk aversion coefficient of $5,$ what proportion of your wealth should you invest in each asset including the risk$-$free asset? k$)$ What is the expected monthly return for your entire portfolio? l$)$ What is the monthly standard deviation for your entire portfolio?