Discuss how the portfolio based on James Stein estimates differ or similar to the M$-$V optimalportfolio

Ta rget 0.01 0.50 1.50 2.00 3.00 3.50 4.00 11.00 Ta rget 0.1300 0.1200 0.1135 0.0900 0.0750 0.0573 0.0500 .o 0.0300 0.0231 0.0222 0.0177 0.0134 0.0100 0.0061 0.0000 Optimal ADBE META MSFT NFLX NKE Portfolio ADBE -28.0167 -0.8062 -0.4401 -0.3898 -0.3435 -0.3303 -0.3203 -0.2762 ADBE -1.4209 -1.3143 -1.2450 -0.9944 -0.8345 -0.6458 -0.5680 .3898 -0.3547 -0.2812 -0.2716 -0.2481 -0.2236 -0.1778 -0.1415 -0.0999 -0.0349 .389 -0.2481 1.000 0.000 0.000 0.000 0.000 META 3.1954 0.0293 0.0638 -0.0192 -0.0246 -0.0248 -0.0254 -0.0324 META 0.1008 0.0884 0.0803 0.0511 0.0325 0.0106 0.0015 .019 -0.0233 -0.0318 -0.0330 -0.0357 -0.0385 -0.0439 -0.0481 -0.0529 -0.0605 .019 -0.0357 0.000 1.000 0.000 0.000 0.000 MSFT 186.0165 4.7505 2.2021 1.9761 1.6678 1.5783 1.5113 1.2194 MSFT 8.8456 8.1353 7.6735 6.0043 4.9389 3.6817 3.1632 NFLX -19.6394 -0.4172 -0.1481 -0.1230 -0.0903 -0.0808 -0.0737 -0.0428 NFLX -0.8515 -0.7762 -0.7272 -0.5502 -0.4372 -0.3039 -0.2489 NKE -140.5558 -2.5564 -0.6777 -0.4441 -0.2094 -0.1423 -0.0919 0.1320 NKE -5.6739 -5.1332 -4.7816 -3.5108 -2.6997 -1.7426 -1.3478 2.6222 0.0723 0.0377 0.0333 0.0289 0.0277 0.0268 0.0226 11.4059 0.2354 0.0960 0.0811 0.0691 0.0662 0.0643 0.0586 Portfolio .976 .1230 -0.4441 1.7426 1.2525 1.1885 1.0323 0.8689 0.5635 0.3219 O. 0449 -0.3884 .976 1.0323 0.000 0.000 1.000 0.000 0.000 13.26% 0.696% 1.391% 5 5 -0.0983 -0.0463 -0.0395 -0.0229 -0.0056 0.0268 0.0524 0.0818 0.1277 .123 -0.0229 0.000 0.000 0.000 1.000 0.000 META -0.2663 0.1069 0.1555 0.2745 0.3989 0.6313 0.8153 1.0262 1.3561 .444 0.2745 0.000 0.000 0.000 0.000 1.000 Beg: End: Length: MSFT 0.1300 0.1200 0.1135 0.0900 0.0750 0.0573 0.0500 0.03 0.0300 0.0231 0.0222 0.0200 0.0177 0.0134 0.0100 0.0061 0.0000 0.0200 0.0134 0.0231 0.0222 0.0177 0.0061 0.4843 0.4408 0.4126 0.3109 0.2467 0.1722 0.1425 .o 0.0717 0.0590 0.0583 0.0577 0.0000 0.0587 0.0650 0.0731 0.0847 0.1059 .08 0.0577 0.0650 0.0590 0.0583 0.0687 0.0847 1.3212 0.0446 0.0239 0.0201 0.0146 0.0124 0.0102 -0.0151 Indifference 2.00 0.4892 0.4087 0.3606 0.2134 0.1419 0.0794 0.0607 0.0333 0.0304 0.0271 0.0269 0.026788 0.0201 May-19 Apr-24 60 L 5 James-Stein Estimator Grand Average 02 of sample means Dispersion measure # assets Years Columnl Annualized Mean Annualized s Annualized s2 Volatility Ratio Shrink Factor J-S Estimator (a) J-S Estimator (g) ADBE 10.15% 34.50% 11.90% 1.7112 1.00 13.26% 19.21% NFLX 18.62% 42.56% 18.11% 2.6038 1.00 13.26% 22.32% 24.32% 21.45% 4.60% 0.6612 0.66 17.01% 19.31% 10.43% 46.57% 21.69% 3.1178 1.00 13.26% 24.11% 0.0201 NKE 2.79% 29.92% 8.95% 1.2872 1.00 13.26% 17.74%