Download 5 years of daily prices for eight stocks from yahoo finance of your choice. Once you do so you have to copy your data into Excel sheet file. Then use these data to construct two portfolios each one includes four stocks. and Create the Report describe the below points
1. Estimate the means, standard deviations, correlations, and variances/covariances among the stocks in each portfolios.
2. Determine the Portfolio Weights of the Optimal Risky Portfolio.
3. Constructing the policy statement begins with a profile analysis of the investor’s current and future financial situations and a discussion of investment objectives and constraints
• Liquidity, time horizon, tax factors, legal and regulatory constraints, and unique needs and preferences
4. Evaluate the performance of each portfolio and determine which one is the best.
5. If you decided to include a new asset class (Gold) to your portfolios, what your assessment to the new portfolios in term return and risk? How the diversification position of the new portfolios compared with the all-equity portfolios?
6. Re-evaluate the performance of the new portfolios versus the all-equity portfolios. Comment on the results obtained and implication you carry with regard the significant diversification.
7. Based on your data analysis, should you consider (gold-equity) portfolios or continue remain invest in equity only?
Instructions for Group Project and Writing Final Report
In writing your Final Report, you are required to adhere to the following guidelines:
1. Cover page
2. Executive summary.
3. Introduction and Objectives
4. Methodology for the calculations.
Note: This section should include all formulas used in the calculation,
5. Calculations, Analysis, Explanation of Results and Decision-Making
Note: This section in the “Core” of the assignment (project) and should include: Excel sheets, Tables, Graphs, etc. and full & detailed analysis and explanation of your findings and decision-making.
6. Conclusion, recommendations, and learning outcomes.
7. Full list of references and bibliographies.
1. All students within the same group are responsible for the overall project, including analysis and interpretation of results and decision-making and the whole structure of the final group’s report.
2. There is no page limit of the final report, however the contents should be meaningful and to the point and include all the items and procedures as discussed above.
3. The deadline of submission will be announced in the in-class and Blackboard.
4. The submission should be in Softcopies Only and to be delivered on time through the Blackboard.
5. Each group will defend its final report and explain relevant findings and results. The groups are required to summarize their report and present it in the form of PowerPoint slides.
Grading & Assessment:
Students are required to produce a professional report. Grades will be given on compliance with Questions and other Requisites to be addressed in the case, in addition to:
1) Proficient analysis and explanation of results & findings,
2) Professional English writing,
3) The overall neatness and organization of the report.
4) In-Class Presentation and Quality of Discussion Generated: Have you presented your case to the class in a way that engaged your audience? Were you prepared for questions from the class and did you come up with your own questions to draw the class into discussion about your case?