You are assigned five stocks (See the excel file titled “Companies assigned to students”) and you are expected to build the investment portfolios using those five stocks. Note that I showed you an example of a three-stock portfolio in the attached excel file. You are expected to apply the same concepts to the five-stock portfolios.
Please collect the monthly stock price for the five companies that you are assigned from FINANCE.YAHOO.COM and employ the data time range from Jan 1, 2015 to April 30, 2021. Then using the risk-free rate of 0.35%, you are expected to develop the complete portfolio and develop the efficient frontier of these six securities (T-bill and five stocks). Following are the procedure in details:
Collect monthly stock price data from Finance.YAHOO.COM. The time range for the date should be from Jan 1, 2015, to April 30, 2021.
Compute monthly stock returns for each stock ( monthly rate of return = (P1 – P0) /P0; P is monthly adjusted close price). Then compute the mean and standard deviation of stock returns for each company (See my excel example with the sheet entitled ‘Data’)
Develop Table of Covariance of these five stocks (See my excel example with the sheet entitled ‘Data’)
Develop Efficient Frontier for all risky portfolios constructed with 5 assigned stocks (See my excel example with the sheet entitled ‘EF’ and ‘Graph’)
Find the Minimum-Variance risky portfolio (See my excel example with the sheet entitled ‘MVP’)
Find the Efficient portfolios including a risk-free asset with a risk-free rate of 0.35% (See my excel example with the sheet entitled ‘Sharpe Ratio for CML’ )
Draw the capital market line (CML) (See my example with the sheet entitled ‘Sharpe Ratio for CML’ and ‘Graph’)
As the best, my homework help website in the world, Writersabc.com strives to deliver only high-quality finished papers to all customers. We value impeccable quality and guarantee that we will deliver on that promise more than anything else. We will deliver!
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
Have you received your finished paper but are not satisfied with what our writer submitted? You can initiate our money-back guarantee to get your money back with no strings attached.Read more
Writersabc.com is the best my homework help website in the world. At WritersABC, we have a team of certified, tried, and tested writers who work around the clock to ensure that you receive only high-quality, 100% original finished papers.Read more
At WritersABC, we guarantee all our customers of the best essay writing service in the writing industry. And that’s precisely what we strive to deliver. As such, we encourage all our customers to utilize our unlimited free-revision policy if you aren’t satisfied with your paper. Don’t accept any paper until you are 100% satisfied with it.Read more
We value the trust that our clients accord us and respect every customers’ rights to personal data protection. We will never share, sell, or rent any information that we collect from you with any third parties. Both your personal and financial information is safe with us.Read more
We have only gotten this far with the help of our loyal customers and a team of dedicated experts. As the best, my homework help website, WritersABC implores customers to help make our writers’ work easier. Visit our fair-cooperation guarantee for more information on the same.Read more