Question: 10. Using Excel, take the information from 3 stocks prices of your choice. Take this infor mation monthly for 10 years. (a) Compute the returns

10. Using Excel, take the information from 3 stocks prices of your choice. Take this infor mation monthly for 10 years. (a) Compute the returns on every stock. In doing so, use the following formula: = Pl_1 (1) P2-1,4 Where pe is the price of stock i at time t. (b) Compute the average return for every stock. (c) Compute the variance and the standard deviation for every stock. (d) Compute the covariance of all the stocks with each other. (e) Set a target expected return for your portfolio based on the averages you com- puted before and find the optimal weights in order to get that expected return by minimizing the risk. 10. Using Excel, take the information from 3 stocks prices of your choice. Take this infor mation monthly for 10 years. (a) Compute the returns on every stock. In doing so, use the following formula: = Pl_1 (1) P2-1,4 Where pe is the price of stock i at time t. (b) Compute the average return for every stock. (c) Compute the variance and the standard deviation for every stock. (d) Compute the covariance of all the stocks with each other. (e) Set a target expected return for your portfolio based on the averages you com- puted before and find the optimal weights in order to get that expected return by minimizing the risk
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