Question
Construct a portfolio of 10 firms based on their prices on November 1, 2021. At least three of the firms should meet the following criterion:
Construct a portfolio of 10 firms based on their prices on November 1, 2021. At least three of the firms should meet the following criterion: each should have a ticker with any one of the initials in your name. Note you may repeat a letter, e.g. one of my initials is J and another is O, so I can find 3 firms with ticker symbol beginning J, or 3 with O, or any combination of the two. Download the history of stock prices for the 10 firms in your portfolio and construct a series of pseudo historical returns going back as long you wish, but for a minimum of one year. Use the returns from the stocks and the historical prices of an appropriate futures contract on a stock index to hedge the beta risk of your portfolio. Plot the returns to the portfolio (hedged and unhedged) over three weeks after you formed the portfolio and hedged it (i.e. after Nov 1). Comment on the performance of your hedge
please show me how to get it done it in excel.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started