Question: 6. Using the correlation matrix, construct 6 portfolios of two stocks each. Find 2 portfolios of positively correlated stocks, 2 portfolios of negatively correlated stocks

6. Using the correlation matrix, construct 6 portfolios of two stocks each. Find 2 portfolios of positively correlated stocks, 2 portfolios of negatively correlated stocks and 2 portfolios of stocks that have correlations that are as close to zero as you have.

7. Compare the portfolio returns you get to the individual returns of the stock that comprise them.

8. Lastly, create portfolio of 5 stocks of your own choosing and weight. Compute the daily value of that portfolio, then use this column to determine the holding period return and volatility of your self-constructed portfolio.

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