Hi,

Can you please help me find the answers to the following questions.

There are two Excel files. The first one "Prices", contains monthly price and dividend data for three stocks (BHP, NAB, and Wesfarmers), as well as price data for the ASX 200 index and monthly risk-free rates.

1.What is the average monthly return for all five assets? ?

2.What is the volatility of monthly returns for the four risky assets? (Do not calculate ?this for the risk-free return.) ?

3.What is the the covariance between each unique pair of the three stocks: BHP & ?NAB, BHP & WES, and NAB & WES?

?

The second Excel sheet is, "Portfolios", each row with a unique triplet of weights for the three assets. Each triplet represents a unique portfolio.

4.What is the average return and volatility for each portfolio (triplet)? ?

5.Plot the results from (4) on a graph with volatility on the x-axis and average returns ?on the y-axis. Using a different indicator/colour, plot the ASX 200 on the same ?graph. ?

6.Was the ASX 200 an efficient portfolio over the 60-month interval? Justify ?your answer. ?

7.Your answer in (6) is based on the ASX 200 versus only three stocks. ?Suppose we were to add another 50 stocks. Is it possible your answer to (6) would change? Briefly explain why or why not? ?

Also comment on the efficiency of the market portfolio represented by ASX 200.

BHP NAB 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 0% 20% 40% 60% 0% 20% 40% 0% 20% 0% WES 0% 0% 0% 0% 0% 0% 20% 20% 20% 20% 20% 40% 40% 40% 40% 60% 60% 60% 80% 80% 100% 100% 80% 60% 40% 20% 0% 80% 60% 40% 20% 0% 60% 40% 20% 0% 40% 20% 0% 20% 0% 0% Date BHP Price BHP Dividend NAB Price NAB Dividend 9/1/2017 27.38 30.71 8/1/2017 27.38 30.2 7/1/2017 25.85 29.95 6/1/2017 23.28 29.59 1.4143 5/1/2017 23.9 30.12 3/31/2017 23.72 0.7597 34 2/28/2017 24.04 33.34 1/31/2017 25 31.99 12/31/2016 26.64 30.33 11/30/2016 25.06 29.7 1.4143 10/31/2016 24.41 28.93 10/1/2016 23.07 0.2646 28 9/1/2016 22.38 27.87 8/1/2016 20.43 27.34 7/1/2016 19.52 26.54 6/1/2016 18.65 25.43 1.41428 5/1/2016 19.08 27.15 3/31/2016 20.68 0.3053 27.19 2/29/2016 16.86 26.24 1/31/2016 15.57 24.19 12/31/2015 15.35 26.69 11/30/2015 17.86 29.14 1.4143 10/31/2015 18.09 28.36 10/1/2015 23.02 1.254 29.09 9/1/2015 22.22 28.93 8/1/2015 25.49 30.08 7/1/2015 26.45 33.55 6/1/2015 27.05 32.14 1.41428 5/1/2015 29.59 33.11 3/31/2015 29.87 1.1546 34.98 2/28/2015 29 36.67 1/31/2015 31.44 36.05 12/31/2014 27.34 33.89 11/30/2014 27.44 31.96 1.4143 10/31/2014 28.89 31.01 10/1/2014 31.73 0.945714 33.29 9/1/2014 31.65 30.95 8/1/2014 7/1/2014 6/1/2014 5/1/2014 3/31/2014 2/28/2014 1/31/2014 12/31/2013 11/30/2013 10/31/2013 10/1/2013 9/1/2013 8/1/2013 7/1/2013 6/1/2013 5/1/2013 3/31/2013 2/28/2013 1/31/2013 12/31/2012 11/30/2012 10/31/2012 10/1/2012 34.27 36.14 33.55 34.58 35.28 34.08 35.86 34.17 35.5 34.94 35.19 33.4 33.41 32.37 29.31 32.59 30.56 30.61 34.64 35.02 34.67 32.14 32 0.924571 0.919714 0.793857 33.49 33.6 31.18 31.86 33.58 33.73 33.05 31.63 33.13 32.9 33.59 32.65 30.87 29.71 28.23 27.59 32.34 29.34 28.73 26.03 23.78 23.12 24.53 1.41429 1.38571 1.32857 1.28571 WES Price WES Dividend ASX200 Risk-Free Rate 42.08 1.7143 5744.3 0.13% 42.62 5714.5 0.13% 40.73 5720.6 0.13% 40.12 5721.5 0.12% 42.7 5724.6 0.12% 43 5924.1 0.12% 45.07 1.4714 5864.9 0.12% 43 5712.2 0.12% 40.26 5620.9 0.13% 42.14 5665.8 0.13% 41.78 5440.5 0.12% 41.01 5317.7 0.12% 44.1 1.35714 5435.9 0.13% 42.44 5433 0.14% 42.93 5562.3 0.14% 40.1 5233.4 0.15% 40.63 5378.6 0.16% 42.77 5252.2 0.17% 41.45 1.3 5082.8 0.17% 39.09 4880.9 0.17% 42.17 5005.5 0.17% 41.61 5295.9 0.17% 38.09 5166.5 0.16% 39.41 5239.4 0.17% 39.22 1.58571 5021.6 0.17% 40.05 5207 0.17% 42.45 5699.2 0.17% 39.03 5459 0.17% 43.66 5777.2 0.18% 43.71 5790 0.18% 43.96 1.27143 5891.5 0.18% 46.39 5928.8 0.21% 41.91 5588.3 0.21% 41.77 0.357143 5411 0.21% 41.42 5313 0.21% 44.92 5526.6 0.21% 42.9 1.64286 5292.8 0.21% 44.07 44.79 42.58 44.12 43.46 41.92 43.71 42.74 44.82 43.68 44.28 42.38 41.9 41.79 40.8 40.43 44.69 41.42 42.28 38.74 37.97 36.63 35.83 1.21429 1.47143 1.1 5625.9 5632.9 5395.7 5492.5 5489.1 5394.8 5404.8 5190 5352.2 5320.1 5425.5 5218.9 5135 5052 4802.6 4926.6 5191.2 4966.5 5104.1 4878.8 4649 4506 4517 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.22% 0.23% 0.23% 0.25% 0.25% 0.25% 0.25% 0.25% 0.26% 0.27% 0.27%