PROBLEM (4) : Dowload monthly stock price data for Oracle Corporation (orel), Microsoft Corporation (MSFT), Dell corporation (DELL), AND Intel cororation (Intel INTC) for 2007 and 2008. Download the same data for S&P 500 INDEX (SPX) for the same period. Answer the following question: A- What is the mean return, variance, standard deviation of a portfolio consisting of the four stocks, were wealth is allocated equally among stocks? B- On average, would you be better off investing in this portfolio or investing in S&P 500 INDEX DURING THE PERIOD OF TWO YEARS? A B Oracle ORCL MSFT Price data 17.03 16.31 Microsoft Portfolio proportions ORCL MSFT Dell Dell D 25% 25% 25% Problem (1) Problem (2) E Date 1/3/2007 29.34 24.22 19.35 825.88 2/1/2007 26.87 22.85 3/1/2007 18 26.59 23.21 18.43 903.25 17.76 896.24 19.96 968.75 4/2/2007 18.66 28.56 25.21 5/1/2007 19.24 29.37 26.91 6/1/2007 19.56 28.21 28.55 7/2/2007 18.98 27.75 27.97 8/1/2007 20.13 12/3/2007 27.59 28.25 9/4/2007 21.49 28.29 27.6 10/1/2007 22.01 35.35 30.6 11/1/2007 20.03 32.38 24.54 22.41 34.3 24.51 20.04 19.9 19.92 18.63 23.06 22.08 1/2/2008 20.4 31.41 2/1/2008 18.66 26.31 3/3/2008 19.41 27.45 20.69 1166.36 22.15 1282.83 22.04 1267.38 24.14 1280 24.24 1400.38 25.22 1385.59 24.55 1322.7 25.1 1330.63 19.86 1378.55 18.91 1468.36 20.06 1481.14 21.08 1549.38 1526.75 20.46 1473.99 21.14 1455.27 21.73 21.92 1503.35 16.48 17.96 1530.62 12.2 15.37 1482.37 11.17 13.34 1420.86 10.24 14.18 1406.82 10.61 14.42 1438.24 4/1/2008 20.7 27.59 5/1/2008 22.67 27.5 6/2/2008 20.84 26.71 21.88 7/1/2008 21.37 24.97 24.57 8/1/2008 21.77 26.6 9/2/2008 20.16 26.02 10/1/2008 18.15 21.77 11/3/2008 15.97 19.84 12/1/2008 17.6 19.08 1/2/2009 17.96 20.14 Intel INTC F S&P 500 ASPX Problem (3) problem 4 data G H I J K Return data Problem 4 Problem (5) Microsoft MSFT Date 1/3/2007 8.09% Oracle Intel ORCL INTC -4.23% -8.42% -5.66% -4.75% 9.37% 2/1/2007 10.36% -1.04% 1.58% -3.64% -0.78% 3/1/2007 3.67% 7.41% 8.62% 12.39% 4/2/2007 3.11% 2.84% 6.74% 3.66% 20.40% 5/1/2007 1.66% -3.95% 6.09% 7.06% 9.99% 6/1/2007 -2.97% -1.63% -2.03% -0.50% -1.20% 7/2/2007 6.06% -0.58% 1.00% 9.53% 1.00% 8/1/2007 6.76% 2.54% -2.30% 0.41% 9.40% 9/4/2007 2.42% 24.96% 10.87% 4.04% -1.06% 10/1/2007 -9.00% -8.40% -19.80% -2.66% -4.54% 11/1/2007 11.88% 5.93% -0.12% 2.24% 0.60% 12/3/2007 -8.97% -8.43% -18.24% -20.88% 3.60% 1/2/2008 -8.53% -16.24% -0.70% -4.78% 6.51% 2/1/2008 4.02% 4.33% 0.10% 6.08% 0.87% 3/3/2008 6.65% 0.51% -6.48% 5.08% 4/1/2008 9.52% -0.33% 23.78% 4.74% -1.46% 5/1/2008 -8.07% -2.87% -5.12% -7.34% -3.46% 6/2/2008 2.54% -6.51% 12.29% 3.32% -1.27% 7/1/2008 1.87% 6.53% -11.56% 3.69% 3.30% 8/1/2008 -7.40% -2.18% -24.16% -18.07% 1.81% 9/2/2008 -9.97% -16.33% -25.97% -14.42% -3.15% 10/1/2008 -12.01% -8.87% -8.44% -13.21% -4.15% 11/3/2008 10.21% -3.83% -8.33% 6.30% -0.99% 12/1/2008 2.05% 5.56% 3.61% 1.69% 2.23% 1/2/2009 4.61% L Dell M Mean Variance Sigma S&P 500 ASPX N O Portfolio returns -5.76% 1.81% 8.02% 4.09% 2.72% -1.78% 4.00% 1.85% 10.57% -9.96% 4.98% -14.13% -7.56% 3.63% 1.44% 9.43% -5.85% 2.91% 0.13% -12.95% -16.67% -10.63% 1.09% 3.23% P Q