Efficient Portfolios And Efficient Frontier You are assigned with five stocks (See the excel file titled “Companies assignment”) and you are expected to bu
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’) gc_208FIN435001_fullgc_2020-11-
Student Name STOCK 1 STOCK 2 STOCK 3 STOCK 4 STOCK 5
Company Name Ticker Company Name Ticker Company Name Ticker Company Name Ticker Company Name Ticker
almansoori, majed Polo Ralph Lauren RL Proctor Gamble Co. PG Pepsico Inc. PEP Nike NKE McCormick MKC
Alvarado, Marilin Proctor Gamble Co. PG Pepsico Inc. PEP Northern Oil and Gas, Inc NOG McCormick MKC McDonald’s MCD
Bautista, Julia Pepsico Inc. PEP Northern Oil and Gas, Inc NOG Nike NKE McDonald’s MCD Southwest Airlines Co LUV
Chai, Yitong Northern Oil and Gas, Inc NOG Nike NKE McCormick MKC Southwest Airlines Co LUV Kroger KR
Chen, Xi Nike NKE McCormick MKC McDonald’s MCD Kroger KR Kimberly-Clark KMB
Franco, Gerardo McCormick MKC McDonald’s MCD Southwest Airlines Co LUV Kimberly-Clark KMB Hormel Foods HRL
Haley, Alyvia McDonald’s MCD Southwest Airlines Co LUV Kroger KR Hormel Foods HRL Hasbro HAS
Haro, Kristian Southwest Airlines Co LUV Kroger KR Kimberly-Clark KMB Hasbro HAS Alphabet Inc GOOGL
Hernandez, Osiris Kroger KR Kimberly-Clark KMB Hormel Foods HRL Alphabet Inc GOOGL GameStop GME
Huang, Wenkai Kimberly-Clark KMB Hormel Foods HRL Hasbro HAS GameStop GME General Mills GIS
Hylin, Julie Hormel Foods HRL Hasbro HAS Alphabet Inc GOOGL General Mills GIS Fossil FOSL
Li, Rongfeng Hasbro HAS Alphabet Inc GOOGL GameStop GME Fossil FOSL Ecolab ECL
Luo, Yu Alphabet Inc GOOGL GameStop GME General Mills GIS Ecolab ECL Chevron Corp CVX
Lyu, Jianfei GameStop GME General Mills GIS Fossil FOSL Chevron Corp CVX Campbell Soup CPB
Mendez, Silvina General Mills GIS Fossil FOSL Ecolab ECL Campbell Soup CPB Costco Wholesale COST
Monzon, Eduardo Fossil FOSL Ecolab ECL Chevron Corp CVX Costco Wholesale COST Coca-Cola Bottling COKE
Nguyen, Manh Tien Ecolab ECL Chevron Corp CVX Campbell Soup CPB Coca-Cola Bottling COKE Biglari Holdings BH
Ortega, Tatum Chevron Corp CVX Campbell Soup CPB Costco Wholesale COST Biglari Holdings BH Clorox CLX
WANG, YIKANG Campbell Soup CPB Costco Wholesale COST Coca-Cola Bottling COKE Clorox CLX Colgate Palmolive CL
Zhai, Jiangling Costco Wholesale COST Coca-Cola Bottling COKE Biglari Holdings BH Colgate Palmolive CL Caterpillar CAT
Zhu, Junyun Coca-Cola Bottling COKE Biglari Holdings BH Clorox CLX Caterpillar CAT Ball Corporation BLL
