Question: Plot ALL the portfolios and identify the Efficient Frontier. Which portfolios lie on the Efficient Frontier? DATE AOL BUD KO TWA 6/1/99 5/3/99 115.375 119.250

Plot ALL the portfolios and identify the Efficient Frontier. Which portfolios lie on the Efficient Frontier?

Plot ALL the portfolios and identify the Efficient Frontier. Which portfolios lie on the Efficient Frontier? DATE AOL BUD KO TWA 6/1/99 5/3/99 115.375

DATE AOL BUD KO TWA 6/1/99 5/3/99 115.375 119.250 71.125 73.063 61.563 68.500 68.063 61.375 4/1/99 3/1/99 2/1/99 1/4/99 142.750 147.000 88.938 87.875 73.125 76.125 76.688 70.688 4.938 5.188 5.438 5.188 5.938 4.750 63.875 65.313 77.563 43.781 31.844 67.000 70.063 67.563 12/1/98 11/2/98 10/1/98 9/1/98 8/3/98 7/1/98 65.625 60.625 59.500 54.000 46.750 51.813 4.875 5.125 5.000 5.688 6.625 8.313 27.906 20.484 29.281 57.625 65.125 80.500 6/1/98 5/1/98 4/1/98 3/2/98 2/2/98 1/2/98 26.281 20.828 19.984 17.078 172 47.188 45.938 45.813 46.250 46.875 44.938 85.500 78.375 75.875 77.438 68.625 64.750 10.375 10.375 9.688 12.313 13.063 11.625 11.953 12/1/97 11/3/97 10/1/97 9/2/97 8/1/97 7/1/97 11.313 9.375 9.625 9.430 8.063 8.438 44.000 43.188 39.938 45.125 42.625 42.938 66.688 62.500 56.625 61.000 57.313 10.063 7.563 7.438 7.875 7.313 6.938 69.125 6/2/97 5/1/97 4/1/97 41.938 42.875 42.875 68.000 68.500 63.625 6.953 6.891 5.641 5.313 4.688 4.625 8.563 8.688 7.250 6.938 5.875 6.438 3/3/97 2/3/97 1/2/97 41.250 44.500 42.500 55.750 61.000 57.875 12/2/96 11/1/96 10/1/96 9/3/96 8/1/96 7/1/96 4.156 4.406 3.391 4.438 3.781 3.813 40.000 42.375 38.500 37.750 37.875 52.625 51.125 50.500 50.875 50.000 46.875 6.563 7.750 8.000 9.625 13.250 10.750 37.375 Table 2 Portfolio weights for 50 random portfolios AOL BUD KO TWA Portfolio Number 1 1.00 0.00 0.00 0.00 2 0.00 0.00 0.00 0.00 0.00 1.00 0.00 1.00 0.25 0.00 0.25 0.50 0.50 1.00 0.00 0.00 0.25 0.50 0.00 0.00 0.50 0.50 0.25 0.00 0.00 7 0.50 0.00 8 0.50 0.00 0.50 9 0.50 0.00 0.00 0.00 0.50 10 0.00 11 0.00 0.00 0.50 0.50 12 0.16 0.27 0.49 0.08 0.08 13 0.12 0.47 0.33 14 0.30 0.18 0.31 15 0.45 -0.26 0.21 0.46 0.39 0.36 16 0.02 0.35 17 0.18 0.26 0.35 0.24 0.20 0.44 0.33 0.50 18 0.27 0.24 19 0.20 0.49 0.00 0.05 -0.02 0.22 20 0.28 21 0.19 0.35 0.40 22 0.06 0.36 0.23 0.32 0.12 0.20 23 0.24 0.07 0.46 0.19 24 0.48 0.37 -0.04 25 0.34 0.25 0.41 0.00 0.38 26 0.25 0.03 0.34 27 0.21 0.34 0.42 0.03 0.36 28 29 30 -0.55 0.37 0.22 0.80 -0.02 0.25 0.41 0.39 0.24 0.32 0.21 31 0.47 0.28 -0.10 0.49 32 -0.14 0.17 0.35 0.48 0.25 0.31 33 0.01 0.29 34 0.21 0.44 35 0.23 0.41 0.18 36 0.10 0.49 0.06 0.45 0.04 0.18 0.35 0.02 0.33 0.35 0.26 37 0.42 0.40 38 39 0.16 0.33 0.37 0.12 0.34 0.22 -0.06 0.25 40 0.14 0.35 41 0.13 0.27 0.42 0.29 42 0.16 43 0.24 0.14 0.07 0.17 -0.23 0.04 44 0.50 0.18 0.48 0.45 0.41 0.43 -0.01 0.07 0.22 0.32 45 0.03 0.50 46 0.44 0.36 0.21 47 0.65 0.21 0.07 48 0.45 0.02 0.41 49 0.38 0.31 -0.15 0.32 0.36 50 0.08 0.40 0.20 DATE AOL BUD KO TWA 6/1/99 5/3/99 115.375 119.250 71.125 73.063 61.563 68.500 68.063 61.375 4/1/99 3/1/99 2/1/99 1/4/99 142.750 147.000 88.938 87.875 73.125 76.125 76.688 70.688 4.938 5.188 5.438 5.188 5.938 4.750 63.875 65.313 77.563 43.781 31.844 67.000 70.063 67.563 12/1/98 11/2/98 10/1/98 9/1/98 8/3/98 7/1/98 65.625 60.625 59.500 54.000 46.750 51.813 4.875 5.125 5.000 5.688 6.625 8.313 27.906 20.484 29.281 57.625 65.125 80.500 6/1/98 5/1/98 4/1/98 3/2/98 2/2/98 1/2/98 26.281 20.828 19.984 17.078 172 47.188 45.938 45.813 46.250 46.875 44.938 85.500 78.375 75.875 77.438 68.625 64.750 10.375 10.375 9.688 12.313 13.063 11.625 11.953 12/1/97 11/3/97 10/1/97 9/2/97 8/1/97 7/1/97 11.313 9.375 9.625 9.430 8.063 8.438 44.000 43.188 39.938 45.125 42.625 42.938 66.688 62.500 56.625 61.000 57.313 10.063 7.563 7.438 7.875 7.313 6.938 69.125 6/2/97 5/1/97 4/1/97 41.938 42.875 42.875 68.000 68.500 63.625 6.953 6.891 5.641 5.313 4.688 4.625 8.563 8.688 7.250 6.938 5.875 6.438 3/3/97 2/3/97 1/2/97 41.250 44.500 42.500 55.750 61.000 57.875 12/2/96 11/1/96 10/1/96 9/3/96 8/1/96 7/1/96 4.156 4.406 3.391 4.438 3.781 3.813 40.000 42.375 38.500 37.750 37.875 52.625 51.125 50.500 50.875 50.000 46.875 6.563 7.750 8.000 9.625 13.250 10.750 37.375 Table 2 Portfolio weights for 50 random portfolios AOL BUD KO TWA Portfolio Number 1 1.00 0.00 0.00 0.00 2 0.00 0.00 0.00 0.00 0.00 1.00 0.00 1.00 0.25 0.00 0.25 0.50 0.50 1.00 0.00 0.00 0.25 0.50 0.00 0.00 0.50 0.50 0.25 0.00 0.00 7 0.50 0.00 8 0.50 0.00 0.50 9 0.50 0.00 0.00 0.00 0.50 10 0.00 11 0.00 0.00 0.50 0.50 12 0.16 0.27 0.49 0.08 0.08 13 0.12 0.47 0.33 14 0.30 0.18 0.31 15 0.45 -0.26 0.21 0.46 0.39 0.36 16 0.02 0.35 17 0.18 0.26 0.35 0.24 0.20 0.44 0.33 0.50 18 0.27 0.24 19 0.20 0.49 0.00 0.05 -0.02 0.22 20 0.28 21 0.19 0.35 0.40 22 0.06 0.36 0.23 0.32 0.12 0.20 23 0.24 0.07 0.46 0.19 24 0.48 0.37 -0.04 25 0.34 0.25 0.41 0.00 0.38 26 0.25 0.03 0.34 27 0.21 0.34 0.42 0.03 0.36 28 29 30 -0.55 0.37 0.22 0.80 -0.02 0.25 0.41 0.39 0.24 0.32 0.21 31 0.47 0.28 -0.10 0.49 32 -0.14 0.17 0.35 0.48 0.25 0.31 33 0.01 0.29 34 0.21 0.44 35 0.23 0.41 0.18 36 0.10 0.49 0.06 0.45 0.04 0.18 0.35 0.02 0.33 0.35 0.26 37 0.42 0.40 38 39 0.16 0.33 0.37 0.12 0.34 0.22 -0.06 0.25 40 0.14 0.35 41 0.13 0.27 0.42 0.29 42 0.16 43 0.24 0.14 0.07 0.17 -0.23 0.04 44 0.50 0.18 0.48 0.45 0.41 0.43 -0.01 0.07 0.22 0.32 45 0.03 0.50 46 0.44 0.36 0.21 47 0.65 0.21 0.07 48 0.45 0.02 0.41 49 0.38 0.31 -0.15 0.32 0.36 50 0.08 0.40 0.20

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