Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions