MVS Portfolios Assessment

Part 2-Question F:

Assume short selling is ALLOWED

1. Use Excel to construct the efficient frontier of portfolio that consists of all 8 stocks based on daily stock returns. Discuss the procedure you've done in order to be able to get the variables needed to form your efficient frontier.
2. Plot the efficient frontier. Note that both expected return (strictly speaking, it should be realized historical return) and standard deviation must be in decimal values and up to 5 decimals.

Part 2-Question G:

Assume short-selling IS ALLOWED and the risk-free rate is 0.04% for the entire holding period.

1. Compute the tangency portfolio. Report the objective function (state in one sentence), the step you need to take in order to achieve the objective (another sentence), and the constraints (another set of sentences with one sentence per constraint) that you must satisfy as per details by the Excel Solver dialogue box. Discuss how you went with the procedure.

Part 2-Question H:

1. Discuss the procedure for how you were able to get your complete portfolio
2. Plot the efficient frontier you found in Part 2-Question (F) the efficient frontier of the MVS portfolios-together with the CAL or portfolios that are combinations of the risk-free asset and the tangency portfolio you found in Part 2-Question (G).
3. Discuss the weights to be allocated in the tangency portfolio and risk-free asset based on the graph in number (2). What made you decide to have these weights?
4. Report the composition of the complete portfolio's risky assets' weights (to 4 decimals) based on the daily stock returns as per the following format.

Part 2-Question 1:

1. Explain why inventors with different views of risk may choose to invest in different sections of the CAL

Are you struggling to keep up with the demands of your academic journey? Don't worry, we've got your back! Exam Question Bank is your trusted partner in achieving academic excellence for all kind of technical and non-technical subjects.

Our comprehensive range of academic services is designed to cater to students at every level. Whether you're a high school student, a college undergraduate, or pursuing advanced studies, we have the expertise and resources to support you.

To connect with expert and ask your query click here Exam Question Bank