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Calculate the monthly data of the Toyota Motor Corp and Microsoft Corp from Yahoo.finance for the period 0 1 . 0 1 . 2 0
Calculate the monthly data of the Toyota Motor Corp and Microsoft Corp from Yahoo.finance for the period
and find the followings.
a Average Return of each stock
b Variance and Standard Deviation of each stock
c Sharpe Ratio of each stock Assume that annual rf
d Covariance of two stocks
e If you are expected to choose only one of them which one should be chosen?
f Find out the weights which make the Sharpe Ratio maximum?
g Find out the weights which make the variance of the portfolio minimum? Hint: Try to
choose two stocks which are lowly correlated and preferably negatively correlated
stocks. The less the correlation, the higher the diversification benefit
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