Question: you will use data from two stocks: AMZN and MSFT. Use the same historical data You will use the adjusted close prices. for 252 trading
you will use data from two stocks: AMZN and MSFT. Use the same historical data
You will use the adjusted close prices. for 252 trading days (one years worth). The initial value of
the portfolio should be $100,000, and it should be a 50/50 portfolio (50% in AMZN and
50% in MSFT) at the start. When creating the simulation, make sure to account for the
correlation between these stocks (they aren't independent!). Note also that the portfolio
will not remain a 50/50 portfolio over time as the values of the stocks change. That is,
the portfolio will not be rebalanced over time, by taking proceeds from selling one stock
and buying the other.
QUESTION-
present a histogram for just the value of the portfolio V252 using 10,000 simulations.
(Please do not create 10,000 sample paths. Just give the histogram for V252. For this
problem, it may be easiest to use a Data Table in Excel)
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