Calculate the monthly return of the stocks of Amazon and Walmart, each, from Jan 4, 2010 to June 4, 2021. (Yahoo Finance provides monthly returns! Use the prices given under adjusted close) 1. What is the monthly expected return and the standard deviation of a portfolio that is composed of a) 10% Amazon, 90% Walmart? b) 20% Amazon, 80% Walmart? c) 30% Amazon, 70% Walmart? d) 40% Amazon, 60% Walmart? e) 50% Amazon, 50% Walmart? f) 60% Amazon, 40% Walmart? g) 70% Amazon, 30% Walmart? h) 80% Amazon, 20% Walmart? i) 90% Amazon, 10% Walmart?

What is the composition of a portfolio that is composed of Amazon and Walmart stocks and that has the lowest standard deviation (Among all possible combinations, not only among the ones in question 1) ? According to your answer, which of the portfolio options in question 1 belong to the efficient frontier ?

You have $10K. What is the expected value and the standard deviation of a portfolio that is formed by investing $5K at the risk free rate and $5K on the portfolio you found in question 2 (assume that monthly risk free rate is 0.0025) ?