3 hours deadline. please upload excel filehere or send to lnsgnr@ g mail . com. this homework is very important.

Build a portfolio of the 2 stocks you picked out of the top 50 stocks (by weight) of S&P 500 Index using monthly returns for the last 5 years.

Compute the expected return and std. deviation of the portfolio for different portfolio compositions. (using both methods- portfolio returns and using formulas)

Interpret the expected return and riskiness of these individual stocks and also the expected return and the riskiness of the portfolio.

Plot the efficient frontier.

Identify the minimum variance portfolio (by minimizing the standard dev. of the portfolio), i.e. the starting point of the efficient frontier.

Plot the returns of each stock against S&P returns (characteristic line) and compute the beta of each stock.

Compute the correlation coeff. Between the returns of these stocks.

Identify the portfolio composition which would yield the maximum Sharpe Ratio (Assume the risk-free rate is 0%).