Question: Using the information below, determine the minimum-variance portfolio that yields an expected return of at least 0.22 Historical data % return on Closing stock prices
Using the information below, determine the minimum-variance portfolio that yields an expected return of at least 0.22
| Historical data | % return on | Closing stock prices | ||||
| Year | the Market | Ford | Lilly | Kellogg | Merck | HP |
| 1983 | 14.13 | 14.47 | 8.09 | 5.02 | 42.38 | |
| 1984 | 0.06 | 15.21 | 16.5 | 10 | 5.22 | 33.88 |
| 1985 | 0.32 | 19.33 | 27.88 | 17.38 | 7.61 | 36.75 |
| 1986 | 0.18 | 28.13 | 37.13 | 25.88 | 13.76 | 41.88 |
| 1987 | 0.05 | 37.69 | 39 | 26.19 | 17.61 | 58.25 |
| 1988 | 0.17 | 50.5 | 42.75 | 32.13 | 19.25 | 47.25 |
| 1989 | 0.31 | 43.63 | 68.5 | 33.81 | 25.83 | 31.88 |
| 1990 | -0.03 | 26.63 | 73.25 | 37.94 | 29.96 | 57 |
| 1991 | 0.31 | 28.13 | 83.5 | 65.38 | 55.5 | 69.88 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
