Let's assume that you have $50,000 to invest in a two-stock portfolio. The selected stocks are...

 

Transcribed Image Text:

Let's assume that you have $50,000 to invest in a two-stock portfolio. The selected stocks are AXP and META. Using Excel, show the optimal portfolio that will maximize the portfolio return and minimize the portfolio risk. Show all the calculations in Excel. Use monthly stock price data for the past three years. Your Excel file should include the following: (1) calculation of risk, return, sharp ratio. (6 points) (2) Optimal portfolio weights. (3 points) (3) A chart showing the optimal portfolio. (4 points) (4) How much money (in $) will you invest in AXP and FB? (2 points) Let's assume that you have $50,000 to invest in a two-stock portfolio. The selected stocks are AXP and META. Using Excel, show the optimal portfolio that will maximize the portfolio return and minimize the portfolio risk. Show all the calculations in Excel. Use monthly stock price data for the past three years. Your Excel file should include the following: (1) calculation of risk, return, sharp ratio. (6 points) (2) Optimal portfolio weights. (3 points) (3) A chart showing the optimal portfolio. (4 points) (4) How much money (in $) will you invest in AXP and FB? (2 points)