Wealth management company

As an employee at the Wealth management company,you have just approcheddy Ms pretty who is seeking to obtain investment advicess as she just won a lottery.Ms Pretty needs professional heip as she does nt know how to make an investment.And she was told by her freands that a well-diversified portfolio wound reduce investment risk.She considers if her money could be invested into same big and well known companies.She might have maximized returns.Ms Pretty named 10 ASX listed companies for the potencial portfolia candidates yet she needs a portfolio which combines only 5 shares

-BHP Billiton
– National Australia Bank
– Telstra Ltd
– Woolworth
– AGL

Prepare an investment report to Ms Pretty by following the requred below;

1 Return construction
a. Obtain monthly return for each of the 5 companies from 1st August 2007 to 1st August 2012 being careful to adjust for devideds any capital changes.
b. plot your return series. provide a brief comment on the distribution of each companys returna and make reference to prior empirical work.
c. Provide estimates of the monthly expected returns,variance and correlation coefficients for these companies.

2. Expected Return
a.calculate the betas of each shere.comment
b. Obtain appropriate estimate of the expected market rate of return and the risk free rate period of the 1st August 2007 to 1st 2012
c. Use the CAPM to formulate an expected return for each of the five companies