Question
Markowitz Efficiency Homework Using the daily returns associated with a portfolio of stocks that consist of Cisco and General Electric, construct a risk-return tradeoff curve.
Markowitz Efficiency Homework
Using the daily returns associated with a portfolio of stocks that consist of Cisco and General Electric, construct a risk-return tradeoff curve. Please include all calculations required, and a diagram of the curve. Note that the 16 daily closing prices for each security will provide you with 15 daily returns. For our purposes an arithmetic average is sufficient. Further, be sure and identify at least five points on the curve; the coordinates of the two endpoints, and three points between these endpoints. Please use Excel in solving this problem
Date | CSCO | GE | ||
12/6/13 | 21.79 | 37.75 | ||
12/7/13 | 21.16 | 37.15 | ||
12/10/13 | 20.74 | 36.8 | ||
12/11/13 | 20.78 | 36.79 | ||
12/12/13 | 20.5 | 37.05 | ||
12/13/13 | 19.01 | 37.05 | ||
12/14/13 | 19.39 | 37.65 | ||
12/17/13 | 19.26 | 38.3 | ||
12/18/13 | 19.62 | 39.72 | ||
12/19/13 | 19.35 | 40.78 | ||
12/20/13 | 18.29 | 40.84 | ||
12/21/13 | 18.19 | 41.35 | ||
12/24/13 | 18.11 | 41.13 | ||
12/26/13 | 18.24 | 40.55 | ||
12/27/13 | 18.49 | 40.95 | ||
12/28/13 | 18.54 | 40.73 | ||
12/31/13 | 18.11 | 40.08 |
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