Excel Project (Efficient portfolios and Efficient frontier)
You are assigned with five stocks 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 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 Oct 30, 2020. Then using the risk-free rate of 0.33%, 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:
1) Collect monthly stock price data from Finance.YAHOO.COM. The time range for the date should be from Jan 1, 2015 to Oct 30, 2020.
2) Compute monthly stock returns for each stock ( monthly rate of return = (P1 – P0) /P0; P is monthly adjusted close price). Then compute mean and standard deviation of stock returns for each company (See my excel example with the sheet entitled ‘Data’)
3) Develop Table of Covariance of these five stocks (See my excel example with the sheet entitled ‘Data’)
4) Develop Efficient Frontier for all risky portfolios constructed with 5 assigned stocks (See my excel example with the sheet entitled ‘EF’ and ‘Graph’)
5) Find the Minimum-Variance risky portfolio (See my excel example with the sheet entitled ‘MVP’)
6) Find the Efficient portfolios including a risk free asset with risk free rate of 0.33% (See my excel example with the sheet entitled ‘Sharpe Ratio for CML’ )
7) Draw the capital market line (CML) (See my example with the sheet entitled ‘Sharpe Ratio for CML’ and ‘Graph’)
The attachments are the Companies assigned, An example of a three-stock portfolio (excel template), and Portfolio Optimization Project Slides.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more