It is some question to solve in portfolio analysis, please send me ur proposal only if u think u can solve it. Many thanks
Download one-month daily stock prices for Microsoft, Oracle, and Tesla from Yahoo Finance which can be accessed free at home. Use daily adjusted close prices from 1st Sep 2020 to 30th Sep 2020.
1. Present in a table the name of the companies, the dates, the adjusted close prices and the returns (in %). The table must fit in one page only. Example:
2. Calculate the average return and variance of returns for each company.
3. Calculate the variance-covariance matrix and correlation matrix for each company above.
4. Select the two companies from question 3 with the lowest correlation coefficient. Use 5 different combinations of portfolio weights from the below table for the two companies to create 5 different portfolios. Calculate the expected return and standard deviation of each portfolio. Present the results in the following table:
Portfolios Weight Company 1 Weight Company 2 Expected Return (%) Standard Deviation (%) 1 1 0 2 0.75 0.25 3 0.5 0.5 4 0.25 0.75 5 0 1
