# Efficient portfolios and Efficient frontier

You are assigned with five stocks (See the excel file titled “Companies assignment”) 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 June 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 June 30, 2021.
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’)
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 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’)

Don't use plagiarized sources. Get Your Custom Essay on
Efficient portfolios and Efficient frontier
Just from \$13/Page

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

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.

### Money-back guarantee

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.

### Zero-plagiarism guarantee

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.

### Free-revision policy

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.