1. Download the historical daily closing prices for BIST100 index. Similarly download the historical prices of 4 other stocks as given in the appendix. Use the historical data for two years. 2. Calculate the expected return, and variance of BIST100 index. 3. Calculate the expected return and covariance matrix for the stocks you selected. USE YEARLY DATA. Note: the yearly return is 252 x daily return. Yearly covariance is 252 x daily covariance. (Expected return for stock 1 is and expected return for stock 2 is 72...) 4. Using the expected return and covariance information for the stocks find the minimum variance portfolio of these four stocks. You can use excel solver to solve the problem. 5. Using the expected return and covariance information for the stocks find the minimum variance portfolio (calculate the weighs as well as the expected return and variance of the portfolio) of these four stocks given that the expected return is equal to 8%. What is the variance of this portfolio? 6. Assume that the risk free rate of return is 3%. Solve the one fund problem to find the tangent portfolio for the 4 stocks you have been assigned. 7. When there is the risk free alternative find the minimum variance portfolio given that the expected return is equal to 8%. What is the variance of this portfolio? Compare your result with question 5. 1. Download the historical daily closing prices for BIST100 index. Similarly download the historical prices of 4 other stocks as given in the appendix. Use the historical data for two years. 2. Calculate the expected return, and variance of BIST100 index. 3. Calculate the expected return and covariance matrix for the stocks you selected. USE YEARLY DATA. Note: the yearly return is 252 x daily return. Yearly covariance is 252 x daily covariance. (Expected return for stock 1 is and expected return for stock 2 is 72...) 4. Using the expected return and covariance information for the stocks find the minimum variance portfolio of these four stocks. You can use excel solver to solve the problem. 5. Using the expected return and covariance information for the stocks find the minimum variance portfolio (calculate the weighs as well as the expected return and variance of the portfolio) of these four stocks given that the expected return is equal to 8%. What is the variance of this portfolio? 6. Assume that the risk free rate of return is 3%. Solve the one fund problem to find the tangent portfolio for the 4 stocks you have been assigned. 7. When there is the risk free alternative find the minimum variance portfolio given that the expected return is equal to 8%. What is the variance of this portfolio? Compare your result with question 5