I need help

Descriptions:

In the exercise, you will analyze portfolios consisting of stock funds and bond funds.

Steps:

Portfolio Formation

1. Select four mutual funds: Two stock funds and two bond funds: Fidelity Growth Discovery Fund (FDSVX) & FCNTX (Contrafund) (COSTCO stock). Both Fidelity. Bond funds: Fidelity Total Bond Fund (FTBFX) + Fidelity Conservative Income Bond Fund (FCONX)

2. Links (In order): Fidelity Growth Discovery Fund

3. Fidelity Contrafund

4. Fidelity Total Bond Fund

5. Fidelity Conservative Income Bond Fund

1. One of the stock funds should include the company that you selected in Written Assignment #1 (if you cant find such a fund, select a fund that includes a competitor of your company).

6. You will create six portfolios each containing two mutual funds (AB, BC, BD, AC, AD, CD): We each input numbers for two pairs of funds. So, you can pick if you want to do two bond funds, and two stock funds, or the other four pair combinations.

FDSVX / FTBFX	FDSVX/FCONX	FCNTX/FTBFX
FCNTX/FCONX	FDSVX/FCNTX	FTBFX/FCONX

8. For each fund collect annual return data for the 10-year period from 2012 to 2021.

9. For each Portfolio compute average return, standard deviations of returns, covariance, and correlation: Ch 6 Excel Template. The 10 year period of returns can be found under the Performance & Risk Tab after clicking Mutual Fund link:

10. Calculate the investment opportunity set for each Portfolio including Sharpe ratios. Each student should analyze two Portfolios: CH6 Optimal Risk Portfolio Template For Written Assignment ^N2.xlsx We should have to just input the information on the first Tab of the Excel and view the results on the last tab called :Opportunity Set

    1. What is the minimum-variance portfolio for each?

    2. What is the optimal risky portfolio for each?

    3. What is the best Sharpe ratio for each portfolio? (Use 1.613% as the rate for 10-yr treasury bonds as the risk-free rate).

Deliverables:

1. A 1.5 page report discussing your results including a summary table and a short paragraph on each portfolio. Your discussion should include:

   1. How do the different fund categories (stock vs bond) and styles (value, growth, sector, high grade, high yield) impact your results? How do the fund correlations impact your results? Explain how the results support or contradict your initial expectations when selecting the funds? What is the impact of the ability to short a fund?

   2. What is the single best fund combination among the 6 portfolios? Why? What does your Complete portfolio look like if you need a target return of 15%

1. An Excel file for each Student that contains your calculations.