Hi, there

Could anyone give me some hints on selecting stocks to form a portfolio? Even better if professors could show me an appropriate portfolio constitute 5 stocks

and what kinds of time series properties here I got to explain?

Thanks so much

Part B (25pts) The tasks presented in Part B of Assignment 1 constitute the first of two parts of a project. Choose a portfolio consisting of a single share of common stocks from up to five individual stocks listed on the ASX200. Once these stocks are chosen, you may not change the makeup of the portfolio until the submission deadline for Assignment 2. These data will be used in Assignment 2 as well (second part of the project) so make sure to keep them. Each day, you will document the following pieces of information about your chosen porfolio: 1. The value of the portfolio, calculated based on the daily closing price of the corre- sponding stocks in the portfolio. 2. The daily return on the portfolio. You should comment and explain the following features of your collected data. All returns should be calculated as log-returns. 1. Describe your portfolio. What stocks did your group choose and why? 2. What is the overall return on your portfolio to date? 3. Explain, using concepts learned in class, the time series properties of your daily portfolio returns. As part of your submission for Part B, each group is required to report their expla- nation and documentation of the data and methods used in a form of a small report (maximum of 2 pages out of the 8 pages for the whole assignment). As stated at the beginning of Assignment 1, additional supporting material which is not included in your report should be included in an appendix