(Late submission will not be accepted) Instructions: You are encouraged to work with another classmate to form a TEAM of 2 people (maximum). However, you may also work alone. When working as a team, please remember to provide both your names on your answer sheet (Excel file). When typing text explanation, you may use text box or simply type in within the cells. Remember to highlight your final answers. Submission: Please send your Excel submission via Canvas messaging system or directly to dcil@psu.edu. Please use "MBADM 820 HW Submission" as the subject heading. Scenario: You are helping a client, Mr. Samuel Winfry, who wishes to set up an investment portfolio consisting of six or twelve stocks. Your client insists on choosing stocks of companies whose names (or tickers) begin with each of the letters that make up either his last or first name or both so that his portfolio could be named either "Samuel" or "Winfry" or "Samuel Winfry." Please go to finance.yahoo.com to generate five years of monthly returns data for these stocks. Given the stock market (S\&P 500) performance over the past 10 years, Mr. Winfry also specifies that he would like a portfolio with the minimum possible risk and a monthly expected retum of at least 1.25%. Please determine the weight of each stock in the portfolio. Assume that your recommended stocks are purchased the day you downloaded the monthly retums data. If you think that Mr. Winfry asks you to generate an "unrealistic" portfolio, 1 how would you advise him? Here, it would be useful for you to redo the exercise that requires a monthly expected return of at least 1.25% to some other figures. You may choose to decrease or increase this required retum figure by an increment of 0.001 (i.e., 0.1% or another figure you deem appropriate) and rerun the solver each time until you find a feasible solution. If your proposed portfolio happens to have zero weight in some of the stocks chosen, you need to specify a particular weight constraint for certain stocks (so that Mr. Winfry is satisfied that the makeup of the proposed portfolio reflects his name). Please make sure that the weight constraint is not too trivial (e.g., anything less than 5% is likely to be considered too small). (Late submission will not be accepted) Instructions: You are encouraged to work with another classmate to form a TEAM of 2 people (maximum). However, you may also work alone. When working as a team, please remember to provide both your names on your answer sheet (Excel file). When typing text explanation, you may use text box or simply type in within the cells. Remember to highlight your final answers. Submission: Please send your Excel submission via Canvas messaging system or directly to dcil@psu.edu. Please use "MBADM 820 HW Submission" as the subject heading. Scenario: You are helping a client, Mr. Samuel Winfry, who wishes to set up an investment portfolio consisting of six or twelve stocks. Your client insists on choosing stocks of companies whose names (or tickers) begin with each of the letters that make up either his last or first name or both so that his portfolio could be named either "Samuel" or "Winfry" or "Samuel Winfry." Please go to finance.yahoo.com to generate five years of monthly returns data for these stocks. Given the stock market (S\&P 500) performance over the past 10 years, Mr. Winfry also specifies that he would like a portfolio with the minimum possible risk and a monthly expected retum of at least 1.25%. Please determine the weight of each stock in the portfolio. Assume that your recommended stocks are purchased the day you downloaded the monthly retums data. If you think that Mr. Winfry asks you to generate an "unrealistic" portfolio, 1 how would you advise him? Here, it would be useful for you to redo the exercise that requires a monthly expected return of at least 1.25% to some other figures. You may choose to decrease or increase this required retum figure by an increment of 0.001 (i.e., 0.1% or another figure you deem appropriate) and rerun the solver each time until you find a feasible solution. If your proposed portfolio happens to have zero weight in some of the stocks chosen, you need to specify a particular weight constraint for certain stocks (so that Mr. Winfry is satisfied that the makeup of the proposed portfolio reflects his name). Please make sure that the weight constraint is not too trivial (e.g., anything less than 5% is likely to be considered too small)
