Question: The Excel file Stock Data contains monthly price data for five (5) stocks. a.Compute the Matrix of Excess Returns for each of the five (5)

The Excel file Stock Data contains monthly price data for five (5) stocks.

a.Compute the Matrix of Excess Returns for each of the five (5) stocks using continuous returns.

b. Use the Matrix of Excess Returns to compute the Sample Variance-Covariance Matrix for these five (5) stocks. (Do not use the Varcovar VBA function)

c.Use the Sample Variance - Covariance Matrix for these five (5) stocks to compute the Global Minimum Variance Portfolio (GMVP)

d. Calculate the Expected Return and Risk for the Global Minimum Variance Portfolio (GMVP).

The Excel file Stock Data contains monthly price data for five (5) .

PRICES FOR 5 STOCKS 1 Stock Delta 2 2 3 4 5 Month MCD 6 1 50.00 7 2 48.83 8 3 54.05 9 9 4 53.11 LO 5 50.86 11 6 52.41 12 7 53.19 13 8 54.62 14 9 59.45 15 10 58.69 16 11 58.68 17 60.53 18 13 63.25 19 14 66.92 15 63.92 21 16 64.00 22 68.00 23 18 72.00 19 75.00 25 MSFT 17.25 19.02 19.74 22.46 22.22 23.42 24.44 26.34 28.06 29.09 26.89 27.49 28.08 29.28 24.85 25.00 27.00 24.00 25.00 AAPL 105.12 125.83 135.81 142.43 163.39 168.21 185.35 188.50 199.91 210.73 192.06 204.62 235.00 261.09 260.00 275.00 278.00 280.00 285.00 GE 11.00 11.65 12.41 10.88 12.44 12.90 15.33 13.32 14.96 14.22 15.11 15.19 17.21 18.00 19.00 20.00 22.00 23.00 24.00 BAC 14.00 12.00 11.16 13.08 14.66 17.43 16.78 14.46 15.72 14.94 15.06 16.53 17.72 18.00 19.00 21.00 22.00 24.00 26.00 12 20 17 24 PRICES FOR 5 STOCKS 1 Stock Delta 2 2 3 4 5 Month MCD 6 1 50.00 7 2 48.83 8 3 54.05 9 9 4 53.11 LO 5 50.86 11 6 52.41 12 7 53.19 13 8 54.62 14 9 59.45 15 10 58.69 16 11 58.68 17 60.53 18 13 63.25 19 14 66.92 15 63.92 21 16 64.00 22 68.00 23 18 72.00 19 75.00 25 MSFT 17.25 19.02 19.74 22.46 22.22 23.42 24.44 26.34 28.06 29.09 26.89 27.49 28.08 29.28 24.85 25.00 27.00 24.00 25.00 AAPL 105.12 125.83 135.81 142.43 163.39 168.21 185.35 188.50 199.91 210.73 192.06 204.62 235.00 261.09 260.00 275.00 278.00 280.00 285.00 GE 11.00 11.65 12.41 10.88 12.44 12.90 15.33 13.32 14.96 14.22 15.11 15.19 17.21 18.00 19.00 20.00 22.00 23.00 24.00 BAC 14.00 12.00 11.16 13.08 14.66 17.43 16.78 14.46 15.72 14.94 15.06 16.53 17.72 18.00 19.00 21.00 22.00 24.00 26.00 12 20 17 24

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