Choose 5 major securities from different industries, and obtain the data on the companies from (yahoo/Internet, etc), and historical data, and calculate the annual rate of return for the past 20 years for each security.

And address the below questions for the above five chosen securities,

1. Calculate the mean, variance, and standard deviation of each securitys annual rate of return.

2. Calculate the correlation coefficient between every possible pair of securities annual rates of return.

3. Choose percentages of your initial investment that you want to allocate amongst the five (5) securities (weights in the portfolio). Create embedded formulae which generate statistical properties of the portfolio upon insertion of the weights. Observe the mean, the standard deviation, and the CV of the annual rate of return of the portfolio.

4. Find the combination of the weights that minimizes CV of the portfolio. How the CV of the optimal portfolio compares with the CVs of its constituents. What is the expected rate of return and standard deviation of the rate of return of the portfolio?

5. Choose different values within the range of the standard deviation of the portfolio, and for each chosen value locate the corresponding point on the efficient frontier by finding the weights that maximize the expected rate of return of the portfolio. Subsequently, construct the efficient frontier of your portfolio.

6. Assume that you initially invested $1,000,000 in the portfolio and that the distribution of the annual rate of return of the portfolio is normal. What is the distribution of the return of the portfolio 20 years after its formation? Provide the graph of the distribution of the return of the portfolio.

NOTE: Please provide explanations of all calculations and the justifications in the Word format. Also, make sure to paste all underlying Excel formulae that you used for calculations in the Word file.