Question: Hi there, I need help constructing a tangency portfolio in excel. The full question and relevant data needed (expected return etc) are attached below. Could
Hi there, I need help constructing a tangency portfolio in excel. The full question and relevant data needed (expected return etc) are attached below. Could please assist with all questions including constructing the graph.


Q5. Suppose the annual rate of return on the risk-ee asset is 1.5%. Construct the tangency portfolio of the 5 selected stocks (M). Calculate and provide the following values in the worksheet \"Q5 \" in the Excel template. Show your working in the Excel le and explain clearly the steps and formulas involved in your Word report. I. The weights of the selected 5 stocks in the tangency portfolio (M) [2 marks] 11. The monthly expected return and standard deviation for the tangency portfolio (M) [2 marks] 1H. Explicitly label the tangency portfolio (M) in the graph sketched in Q4 (III) [1 mark] IV. The Sharpe ratio of the tangency portfolio (M) [1 mark] Q5: Tangency Portf 5 Stocks (6 Marks) I. Weights of Stocks A2M BXB QBE SYD WPL Provide the names or issuer codes of the stocks here. W1 W2 W3 W4 W5 Tangency Portfolio 1.207 -0.336 0.747 -0.110 -0.508 Total = 1 Return on RF asset = 1.50% II. Expected Return and Risk Return (%) Std Dev % Tangency Portfolio 1.05% 16% Ill. Show Tangency Portfolio on Efficient Frontier Below E(R) IV Sharpe Ratio 5.729% Ill. Variance-Covariance Matrix from Q2 Issuer Code A2M BXB QBE SYD WPL Inverse var-cov matrix Z A2M 0.0165 0.0013 0.0000 0.000618 -4E-05 52.75298 -24.7973 4.6356 -7.1716 10.17444 3.013729 w1 1.206967 1.206967 -0.33576 0.74724 -0.11003 -0.50841 BXB 0.0013 0.0044 0.0026 0.002348 0.002864 -24.7973 336.1371 -47.04 -66.3415 -56.2791 -0.83838 w2 -0.33576 QBE 0.0000 0.0026 0.0080 0.00348 0.004922 4.63556 -47.0365 216.25 -45.0783 -92.3155 1.865816 w3 0.74724 SYD 0.0006 0.0023 0.0035 0.005586 0.00426 -7.1716 -66.3415 -45.08 331.2379 -125.118 -0.27475 -0.11003 WPL 4E-05 0.002864191 0.0049222 0.00426 0.007989 10.17444 -56.2791 -92.32 -125.118 269.0054 -1.26948 w5 -0.50841 Total z 2.496945 E Expected return of the portfolio from Q3 0.0486931 0.001008 0.0057027 -0.000554 -0.004651
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