Hello please help me with this question, I would like to know how you solved it and the answer.

Suppose the professor decides to make the portfolio with equal weight of stock holding (each stock holds 25% weight in the portfolio). Estimate the resulting portfolio position.

How does each stock affect the variability of the equity investment? What is the risk and return of the portfolio?

What is the correlation between the stocks? How do you think the stocks effect the portfolios risk and return?

Monthly Risk-Free rate (in percentages)

1997-06-01	0.93%
1997-07-01	1.05%
1997-08-01	1.14%
1997-09-01	0.95%
1997-10-01	0.97%
1997-11-01	1.14%
1997-12-01	1.16%
1998-01-01	1.04%
1998-02-01	1.09%
1998-03-01	1.03%
1998-04-01	0.95%
1998-05-01	1%
1998-06-01	0.98%
1998-07-01	0.96%
1998-08-01	0.90%
1998-09-01	0.61%
1998-10-01	0.96%
1998-11-01	0.41%
1998-12-01	0.39%
1999-01-01	0.34%
1999-02-01	0.44%
1999-03-01	0.44%
1999-04-01	0.29%
1999-05-01	0.50%
1999-06-01	0.57%
1999-07-01	0.55%
1999-08-01	0.72%
1999-09-01	0.68%
1999-10-01	0.86%
1999-11-01	1.07%
1999-12-01	1.20%
2000-01-01	1.32%
2000-02-01	1.55%
2000-03-01	1.69%
2000-04-01	1.66%
2000-05-01	1.79%
2000-06-01	1.69%

Month Sale Date GM GE Oracle Microsoft DJIA

1 1-Jun-97 -0.86995 10.49754 21.13459 2.77686 4.485357

2 1-Jul-97 1.710171 9.648689 -0.91827 0.450306 5.939172

3 1-Aug-97 14.31172 5.415162 13.06766 12.58405 6.10839

4 1-Sep-97 -2.62739 -9.50521 4.180328 -6.00114 -6.97605

5 1-Oct-97 10.83401 9.592326 -5.58615 1.270802 5.156892

6 1-Nov-97 -1.20823 -0.70022 -0.33333 0.179265 -4.25563

7 1-Dec-97 -8.00688 10.23692 -11.1204 7.217417 4.413641

8 1-Jan-98 6.896552 -0.81103 -30.0094 -10.1252 -1.30861

9 1-Feb-98 -0.41824 8.503679 10.34946 19.83906 2.523061

10 1-Mar-98 17.14 -2.52101 -2.07065 7.592975 5.459818

11 1-Apr-98 2.11712 12.89185 30.0995 8.473356 3.717582

12 1-May-98 1.760057 -0.41652 -18.5468 -0.84089 3.143211

13 1-Jun-98 3.741617 -2.50618 -10.7981 -6.56104 -2.45652

14 1-Jul-98 -0.88465 10.02896 5.526316 30.61858 1.415543

15 1-Aug-98 3.833245 -0.65811 10.72319 -0.85939 -2.89468

16 1-Sep-98 -17.0466 -7.60979 -22.8604 -6.63962 -10.9177

17 1-Oct-98 -4.77851 -8.6357 31.38686 2.78546 -2.48996

18 1-Nov-98 20.29924 17.07705 10.88889 1.691332 14.06637

19 1-Dec-98 10.07982 4.292582 23.34669 22.37762 4.909059

20 1-Jan-99 2.512648 11.95258 16.8156 7.088803 0.524331

21 1-Feb-99 30.48698 1.411765 37.06537 24.70436 1.789155

22 1-Mar-99 -10.9758 -1.23312 -7.10299 -12.2586 -0.22385

23 1-Apr-99 5.181951 10.58264 -29.4921 22.1695 5.444954

24 1-May-99 9.7295 -4.24731 0.929512 -13.8203 12.02318

25 1-Jun-99 -8.76355 -2.89773 -2.14889 -1.72759 -3.79884

26 1-Jul-99 -1.99462 8.718549 48.07843 16.16561 4.437037

27 1-Aug-99 -8.50214 -2.12594 0.95339 -6.99638 -3.79942

28 1-Sep-99 7.967033 5.396384 -1.15425 8.925834 2.742073

29 1-Oct-99 -4.35564 3.246239 20.11677 -2.59796 -6.07869

30 1-Nov-99 10.44177 11.29857 13.07998 2.667259 3.655407

31 1-Dec-99 5.367273 4.012059 38.10082 0.876813 3.285621

32 1-Jan-00 5.300939 11.46042 67.11941 25.0778 3.265296

33 1-Feb-00 14.2302 -8.34167 -8.56756 -11.685 -2.78644

34 1-Mar-00 -12.9032 -3.39731 32.40741 -11.7836 -8.17975

35 1-Apr-00 16.44444 20.82667 7.524476 0.077084 10.69253

36 1-May-00 9.291357 1.323001 3.655047 -19.1901 -3.65481

37 1-Jun-00 -24.6844 -1.39307 -2.2713 -12.0915 -1.47598

Exhiblt MONTHLY RETURN DATA Month Sale date GM GE Oracle Microsoft DJIA 1 1-Jun-97-0.86995 10.49754 21.13459 2.77686 4.485357 2 1-Jul-97 1710171 9.648689 -0.91827 0.450306 5.939172 3 1-Aug-97 14.31172 5.415162 13.06766 12.58405 6.10839 4 1-Sep-97 -2.62739-9.50521 4.1803286.00114 -6.97605 5 1-Oct-97 10.83401 9.592326 -5.58615 1.270802 5.156892 6 1-Nov-97 1.20823-0.70022 -0.33333 0.179265 -4.25563 7 1-Dec-97 -8.00688 10.23692 -11.1204 7.217417 4.413641 8 1Jan-98 6.896552-0.81103 -30.009410.1252-1.30861 9 1-Feb-98 -0.41824 8.503679 10.34946 19.83906 2.523061 17.142.52101 -2.07065 7.592975 5.459818 11 1-Apr-98 -2.11712 12.89185 30.0995 8.473356 3.717582 12 1-May-98 1.760057 -0.41652 -18.5468 -0.84089 3.143211 13 1-Jun-98 3.7416172.50618-10.7981 6.56104-2.45652 14 1-Jul-98 -0.88465 10.02896 5.526316 30.61858 1.415543 15 1-Aug-98 3.833245 -0.65811 10.72319 0.85939-2.89468 16 1-Sep-98-17.0466.60979 -22.8604 6.63962 -10.9177 17 1-Oct-98 77851 -8.6357 31.38686 2.78546 -2.48996 18 1-Nov-98 20.29924 17.07705 10.88889 1691332 14.06637 19 1-Dec-98 10.07982 4.292582 23.34669 22.37762 4.909059 20 1-Jan-99 2.512648 11.95258 16.8156 7.088803 0.524331 21 1-Feb-99 30.48698 1.411765 37.06537 24.70436 1789155 22 1-Mar-99 -10.97581.23312-7.1029912.2586 -0.22385 23 1-Apr-99 5.181951 10.58264 -29.4921 22.1695 5.444954 9.7295-4.24731 0.929512-13.8203 2.02318 25 1-Jun-99 8.76355-2.89773-2.14889 1.72759 -3.79884 1-Jul-991.99462 8.718549 48.07843 16.1656 4.437037 27 1-Aug-99 -8.50214 -2.12594 0.95339 -6.99638 -3.79942 28 1-Sep-99 7.967033 5.3963841.15425 8.925834 2.742073 29 1-Oct-99 35564 3.246239 20.11677 2.59796 -6.07869 30 1-Nov-99 10.44177 11.29857 13.07998 2.667259 3.655407 31 1-Dec-99 5.367273 4.012059 38.10082 0.876813 3.285621 25.0778 3.265296 33 1-Feb-00 14.2302-8.34167-8.56756-11.685 2.78644 -11.7836 -8.17975 35 1-Apr-00 16.44444 20.82667 7.524476 0.077084 10.69253 36 1-May-00 9.2913571.323001 3.655047 -19.1901 -3.65481 37 1-Jun-00 24.68441.39307 2.2713 12.0915 -1.47598 10 1-Mar-98 24 1-May-99 26 32 1-Jan-00 5.300939 11.46042 67.11941 34 1-Mar-0012.9032-3.39731 32.40741