Exercise 1 Using the data on these 6 companies, compute the weights of two tangency portfolios and use these two portfolios to generate the mean-variance efficient frontier. Plot the frontier in the usual mean-standard deviation space. (For consistency, choose the following "c" values: c=0% and c=.25% (monthly).) Hint: First compute the means and variance-covariance matrix for the six companies Also Plot the tangent to the mean-variance frontier for the risk free rate of .25% Exercise 2: Using the data on these six companies compute the return matrix and variance covariance matrix and then use solver to compute the return and variance of efficient frontier without shortsale. Hint: Compute the min. variance for Rp ranging from .2% to 1% with increments of .1%.

Month PFE BAC AA GE VZ MO 1 -0.01319 -0.01014 0.044681 -0.10153 -0.06079 -0.11195 2 0.006038 -0.01965 0.028513 0.096027 0.093528 0.010677 3 -0.04502 0.024432 0.007159 -0.00076 -0.05386 -0.01307 4 0.021315 0.003882 -0.00612 0.03426 -0.04508 0.019859 5 0.028419 0.007735 0.033082 0.033861 -0.06099 -0.01173 6 -0.00561 -0.04413 -0.02607 -0.01147 -0.03579 -0.02346 7 -0.04407 -0.00433 0.035571 -0.03916 0.073479 0.00246 8 -0.00161 -0.0258 0.055854 -0.03132 -0.03957 -0.04441 9 -0.02161 0.008331 0.05389 -0.02002 -0.08847 -0.00061 10 0.038955 0.007128 0.018179 -0.12936 -0.00532 -0.02371 11 0.060585 0.053377 -0.03011 -0.0161 0.134623 0.014916 12 0.005666 -0.01176 0.037505 0.1 0.078803 -0.05816 13 -0.0416 -0.06562 -0.03185 0.101201 0.065269 0.064575 14 0.036627 0.011298 -0.00608 0.029206 -0.06444 0.064435 15 0.004144 0.058108 -0.00334 -0.04849 0.042292 0.010683 16 0.096179 -0.00546 0.032458 0.016453 0.105366 -0.01835 17 -0.02043 -0.00954 -0.01107 -0.05646 -0.05654 -0.0551 18 -0.0062 -0.03065 0.025985 -0.00803 0.020177 0.073054 19 0.07131 -0.00819 0.089064 0.107371 -0.07448 0.021947 20 0.009703 0.041909 0.044517 0.069642 -0.0404 0.040213 21 0.0408 0.043746 -0.07327 0.029028 -0.01924 0.055429 22 0.0056 -0.00538 0.062443 -0.0603 0.031027 0.007406 23 0.010024 0.004842 0.035411 0.040525 0.083362 -0.01727 24 -0.00854 0.062642 0.029331 -0.05784 -0.03722 0.065827 25 -0.01517 -0.03117 0.018294 0.013127 0.081973 0.045247 26 -0.02263 -0.02386 -0.03559 -0.03773 0.034365 -0.02908 27 0.003738 0.01289 0.052088 0.012019 0.014666 0.013904 28 -0.00235 0.042421 0.030498 0.047506 0.046903 0.017537 29 0.007269 0.019533 0.031631 0.049887 0.167935 0.140126 30 -0.03589 0.026078 -0.0038 -0.06984 -0.01817 -0.05422 31 -0.03007 0.012539 -0.05232 -0.08056 -0.05749 0.045057 32 0.068747 0.002838 0.044231 0.068907 -0.03927 -0.01736 33 0.004538 0.072292 0.012534 -0.01651 0.070901 0.057307 34 -0.03959 -0.0058 0.0489 0.007368 0.01636 0.050136 35 -0.04453 -0.06973 0.063485 -0.02276 -0.08133 -0.06208 36 -0.0917 -0.02377 -0.01586 -0.04335 0.004949 0.011109 37 0.070044 -0.04613 0.002779 0.027717 -0.09467 -0.1014 38 -0.09989 -0.05402 -0.03497 -0.03253 0.127531 -0.06464 39 -0.02995 0.116777 -0.00178 -0.06059 -0.02908 0.003579 40 -0.00976 -0.11646 -0.0991 -0.03918 -0.03078 0.071672 41 -0.09403 -0.06055 0.113 -0.02138 0.16705 -0.00026 42 -0.27933 -0.12109 -0.06334 -0.09762 -0.12244 -0.0798 43 0.378299 0.059948 -0.01021 0.068689 -0.0525 -0.02627 44 -0.0535 -0.00672 0.033415 0.040707 -0.04296 0.031727 45 0.144509 -0.0815 -0.04137 -0.03506 -0.29723 -0.08628 46 -0.30943 -0.2349 -0.03276 -0.03959 -0.4907 -0.06108 47 -0.32768 -0.11994 -0.16206 -0.05421 -0.04957 0.100438 48 -0.11385 -0.03844 -0.04353 0.077906 0.046468 0.038285 49 -0.53267 -0.25124 0.098274 -0.17674 -0.30817 -0.10531 50 -0.3997 -0.27288 -0.06651 -0.13375 -0.17843 -0.04486 51 0.729114 0.188014 0.05829 0.106417 0.17817 0.058535 52 0.309384 0.251236 0.019351 -0.01909 0.235695 0.019868 53 0.262038 0.065613 0.04654 0.148952 0.019846 -0.0356 54 0.172138 -0.12315 -0.02224 -0.01251 0.12039 0.050239 55 0.120455 0.143345 0.069555 0.062 0.138432 0.058575 56 0.189317 0.037313 0.042784 0.05838 0.027211 -0.03212 57 -0.03752 0.188489 -0.00711 -0.00898 0.088797 -0.02481 58 -0.1383 -0.13155 0.016845 0.029003 -0.05335 -0.00677 59 0.087106 0.123422 0.038653 0.076336 0.010467 0.063197 60 -0.04921 -0.04931 0.061669 0.001101 0.28754 0.053083