Date (yearmonth)	Nondurables	Durables	Manufacturing	Energy	HighTech	Telecom	Retails	Health	Utilities
200001	-0.0472	-0.0127	-0.0869	0.0124	-0.0525	-0.0354	-0.1111	0.0759	0.0603
200002	-0.0627	-0.0827	-0.0385	-0.0541	0.18	-0.041	-0.0393	-0.0275	-0.0716
200003	0.0742	0.1062	0.0749	0.1169	0.0419	0.0767	0.1334	0.0016	0.0594
200004	-0.0195	0.0883	0.0142	-0.0199	-0.105	-0.0762	-0.0446	0.0526	0.0748
200005	0.0708	-0.1251	-0.0169	0.0938	-0.1076	-0.1076	-0.0284	0.0396	0.0397
200006	0.022	-0.0903	-0.0123	-0.0505	0.1261	0.0404	-0.0223	0.1155	-0.0472
200007	0.0072	0.0486	-0.0148	-0.0258	-0.0518	-0.0746	-0.0123	-0.0647	0.0421
200008	-0.0208	0.0536	0.0738	0.0874	0.1268	-0.0139	-0.0239	0.0346	0.1176
200009	0.0371	-0.0431	-0.0569	0.0451	-0.1482	-0.0335	0.0266	0.0371	0.0916
200010	0.0774	0.0247	0.0351	-0.029	-0.0748	-0.0024	-0.0183	0.0208	-0.0181
200011	0.0274	-0.1153	-0.0313	-0.0253	-0.2316	-0.1546	-0.0104	0.0075	0.0306
200012	0.055	-0.0018	0.0695	0.0769	-0.0799	-0.0457	0.0566	0.0351	0.066
200101	-0.022	0.134	-0.0107	-0.0337	0.1603	0.1438	0.0643	-0.0851	-0.1077
200102	0.0013	-0.0116	-0.0391	0.0004	-0.2605	-0.0985	-0.0536	-0.0055	0.0616
200103	-0.0478	-0.0287	-0.061	-0.0014	-0.1386	-0.0579	-0.0288	-0.0857	0.0124
200104	0.009	0.0859	0.0747	0.1006	0.1804	0.027	0.0561	0.0423	0.0553
200105	0.0339	-0.0162	0.0219	0.0009	-0.0321	-0.0138	0.0161	0.0281	0.0024
200106	-0.0153	0.0373	-0.0463	-0.0752	0.014	-0.0311	-0.0259	-0.0307	-0.0605
200107	-0.0017	0.0318	0.0052	-0.0223	-0.0753	-0.0056	0.0458	0.0231	-0.0383
200108	0.0247	-0.1123	-0.0199	-0.0352	-0.1265	-0.093	-0.0698	-0.0309	0.0052
200109	-0.0298	-0.1696	-0.128	-0.0562	-0.1898	-0.0197	-0.0952	-0.006	-0.0658
200110	0.0126	0.01	0.0388	0.0473	0.1573	-0.0967	0.0157	0.0124	0.0187
200111	0.0219	0.1548	0.0843	-0.0407	0.1589	0.058	0.0982	0.0503	-0.0154
200112	0.0192	-0.0074	0.0262	0.0595	-0.0064	0.0254	0.0433	-0.0282	0.0404
200201	0.0146	0.0294	0.0154	-0.0288	-0.005	-0.0694	0.0262	-0.0241	-0.0434
200202	0.0427	0.0316	0.0442	0.0546	-0.1309	-0.0221	-0.0015	-0.0046	-0.0037
200203	0.0403	0.0686	0.0497	0.0767	0.0647	0.0012	0.0209	0.0054	0.1028
200204	0.0247	0.018	-0.0144	-0.0454	-0.1177	-0.1296	-0.0163	-0.0752	-0.0041
200205	0.0125	-0.0031	-0.0028	-0.0077	-0.0374	0.032	-0.0143	-0.0227	-0.0691
200206	-0.0585	-0.081	-0.0306	-0.0006	-0.1213	-0.1402	-0.051	-0.0968	-0.058
200207	-0.0662	-0.1218	-0.085	-0.1183	-0.0974	-0.1179	-0.1143	-0.0257	-0.1213
200208	0.0224	0.0057	-0.0127	0.0063	-0.0094	0.0014	0.0185	0.0063	0.0341
200209	-0.0767	-0.1093	-0.0835	-0.0811	-0.166	-0.0963	-0.0943	-0.0588	-0.1084
200210	0.0506	-0.0309	0.0379	0.0318	0.194	0.2211	0.0574	0.0567	-0.0062
200211	-0.0109	0.119	0.0626	0.0301	0.1624	0.1176	0.0189	0.0378	0.0157
200212	-0.0025	-0.0717	-0.0377	0.0084	-0.1291	-0.0944	-0.0697	-0.0407	0.0384

How to find Question B if given only the returns?

1. Use the data contained in the sheet "data Q1" from the Excel file hw3.xlsx, that is available on Quercus. The file contains the monthly stock return data (in decimal form) for 9 industries: Nondurables, Durables, Manufacturing, Energy, HighTech, Telecom, Retails, Health, and Utilities. The data sample period is from 2000/01 - 2023/08. For questions (a) and (b) assume you cannot invest in the risk-free asset. b) Perform a mean-variance optimization using the 9 industry portfolios. In particular, find the portfolios that minimize the variance for the following levels of mean (monthly) return: E[Rp]=0.00%,0.50%, 1.00%,1.50%, and 2.00%. Compute the standard deviation of each of the optimal portfolios. Plot the efficient frontier in a second graph along with the industry portfolios. Why is the frontier to the left of the individual industry portfolios? 1. Use the data contained in the sheet "data Q1" from the Excel file hw3.xlsx, that is available on Quercus. The file contains the monthly stock return data (in decimal form) for 9 industries: Nondurables, Durables, Manufacturing, Energy, HighTech, Telecom, Retails, Health, and Utilities. The data sample period is from 2000/01 - 2023/08. For questions (a) and (b) assume you cannot invest in the risk-free asset. b) Perform a mean-variance optimization using the 9 industry portfolios. In particular, find the portfolios that minimize the variance for the following levels of mean (monthly) return: E[Rp]=0.00%,0.50%, 1.00%,1.50%, and 2.00%. Compute the standard deviation of each of the optimal portfolios. Plot the efficient frontier in a second graph along with the industry portfolios. Why is the frontier to the left of the individual industry portfolios