Constructing a 2-security Portfolio Steps for 2 companies selected from Investing.com - Stock Market Quotes & Financial News with numbers, equations and tables for a certain period of time

1- Calculate the expected return and standard deviation for each stock

2- Calculate the covariance and correlation coefficient between the stocks

3- Choose the best portfolio P based on the concept of diversification.

4- Calculate the expected return and standard deviation for this portfolio using 50%-50% weights.

5- Find the weights of the portfolio (Pmin var) that has the minimum variance, using the equation.

6- Calculate the expected return and standard deviation for the minimum-variance portfolio

based on below data the following :

Date	Price-Tesla	Price-MCD	Price-BA
22/03/2022 00:00	905.39	238.92	192.83
22/02/2022 00:00	870.43	244.77	205.34
22/01/2022 00:00	936.72	259.45	200.24
21/12/2022 00:00	1,056.78	268.07	201.32
21/11/2022 00:00	1,144.76	244.6	197.85
21/10/2022 00:00	1,114.00	245.55	207.03
21/09/2022 00:00	775.48	241.11	219.94
21/08/2022 00:00	735.72	237.46	219.5
21/07/2022 00:00	687.2	242.71	226.48
21/06/2022 00:00	679.7	230.99	239.56
21/05/2022 00:00	625.22	233.89	247.02
21/04/2022 00:00	709.44	236.08	234.31
21/03/2022 00:00	667.93	224.14	254.72
21/02/2022 00:00	675.5	206.14	212.01
21/01/2022 00:00	793.53	207.84	194.19
20/12/2022 00:00	705.67	214.58	214.06
20/11/2022 00:00	567.6	217.44	210.71
20/10/2022 00:00	388.04	213	144.39
20/09/2022 00:00	429.01	219.49	165.26
20/08/2022 00:00	498.32	213.52	171.82
20/07/2022 00:00	286.15	194.28	158
20/06/2022 00:00	215.96	184.47	183.3
20/05/2022 00:00	167	186.32	145.85
20/04/2022 00:00	156.38	187.56	141.02
20/03/2022 00:00	104.8	165.35	149.14
20/02/2022 00:00	133.6	194.17	275.11
20/01/2022 00:00	130.11	213.97	318.27
19/12/2022 00:00	83.67	197.61	325.76
19/11/2022 00:00	65.99	194.48	366.18
19/10/2022 00:00	62.98	196.7	339.91
19/09/2022 00:00	48.17	214.71	380.47
19/08/2022 00:00	45.12	217.97	364.09
19/07/2022 00:00	48.32	210.72	341.18
19/06/2022 00:00	44.69	207.66	364.01
19/05/2022 00:00	37.03	198.27	341.61
19/04/2022 00:00	47.74	197.57	377.69
19/03/2022 00:00	55.97	189.9	381.42
19/02/2022 00:00	63.98	183.84	439.96
19/01/2022 00:00	61.4	178.78	385.62

Prepare to answer a question about your project -

Explain what you know about the businesses you are going to invest in. (refer to their line of business) -

- Explain what you know about the businesses you are going to invest in. (refer to their line of business) - Interpret a high/low correlation between the returns of any two stocks - What are the other steps you should be taking to form a good investment strategy? e.g. Deciding on your objectives deciding first on your risk tolerance - deciding on your asset allocation ... constructing a broader portfolio following a disciplined investment approach.. etc.