Build an active portfolio. risk premium of 6%.

	SD of excess return	beta	SD of syst comp	SD of residual
S&P500	0.18	1	0.1800	0.0000
AAPL	0.2955	1.2	0.2160	0.2016
AMZN	0.3538	1.5	0.2700	0.2286
NVDA	0.3951	1.8	0.3240	0.2261
TGT	0.2801	0.8	0.1440	0.2403
WMT	0.2323	0.6	0.1080	0.2057
XOM	0.2159	0.8	0.1440	0.1609

Find the covariance matrix according to the index model.

Create a forecast of alpha for each company.

Construct the risky portfolio.

Compute and report the following parameters for portfolio: 1. Weights of the securities in your active portfolio and its . 2. Weight of the active portfolio in the overall portfolio. 3. Aggregate alpha and beta of the active portfolio and of the overall portfolio. 4. Compare the Sharpe ratio of an investment in the market with the Sharpe ratio of the overall portfolio you have constructed.