Using the data obtained in Problem 13, construct a portfolio from AAPL, AMD, and ORCL that matches the Information Technology S&P index as closely as possible. Use the return data for the Information Technology S&P index given in the following table. The model for constructing the portfolio should be similar to the one developed for Hauck Financial Services in Section 8.2.
Year Return
1..........................28.54%
2............................78.14
3............................78.74
4..........................240.90
5..........................225.87
6..........................237.41
7...........................48.40
8............................2.56
9.............................0.99
In Problem 13

Transcribed Image Text:

FIGURE 8.15 YEARLY RETURNS FOR AAPL, AMD, AND ORCL AAPL Year Adj. Close Adj. Close Adj. Close Return 0.0962 0.8104 0.9236 0.8753 0.1340 -0.5432 0.4517 1.2263 0.6749 AAPL AMD ORCL ORCL Ret Return -0.5537-0.1074 0.1272 0.8666 0.4506 0.9956 0.3124 0.1533 -0.4270-0.5230 1.1194 -0.3610 1.0424 0.1416 0.0613-0.0065 0.9729 -0.0912 AMD 4.16 4.58 10.3 25.94 10.81 12.36 7.18 11.28 38.45 75.51 17.57 10.1 11.47 18 24.6 16.05 5.24 14.86 15.8 41.8 4.32 3.88 9.23 24.98 29.12 17.26 12.03 13.86 13.77 12.57 4 10 Data Source: CSI Web site: www.csidata.com