NorthStar Investment Group $($NIG$)$ is a reputed northern US asset management firm. They hired a European team to advise Mr Maxwell and Mr John, two European high net worth individuals. Mr Maxwell and Mr John approached NIG for a European stock investment strategy, where NIG has no advantage. Both investors have comparable investing time horizons, however Mr John will short any asset, while Mr John will not short the risk$-$free rate. After careful consideration, the investors chose the following $10$ stocks for the portfolio, however they are unaware of its composition.

Your supervisor needs a thorough analysis of these securities$.$ He gave you explicit instructions:

$1-$ Calculate the annualized returns, volatilities and Sharpe Ratio of each security and analyze the correlation matrix. Are you expecting any diversification effect?

$2-$ Plot the efficient frontier and compute the feasible tangency portfolio to Mr John and Mr Maxwell. Compare the two portfolios.

$3-$ Assuming that both investors have their preferences represented by a quadratic utility function$U_p=E(r)-\frac{}{2}{}^2$ with a risk aversion level $(\backslash$gamma $)$ of $4$ for Mr John and $6$ for Mr Maxwell, what would be the optimal allocation for Mr John and for Mr Maxwell? Compare the two recommendations and analyze how they behave for different levels of risk aversion.

$4-$ Assume now that you are on $30$th of September of $2020$ and your group is currently working at NorthStar Investment Group $($NIG$).$ Your group is preparing a follow$-$up meeting with Mr Maxwell and Mr john. In the meantime, both Clients have decided to follow your recommendations. On your follow$-$up analysis you decided to compare the return, volatility and Sharpe Ratio of the recommended tangency portfolios, assuming no rebalancing. After looking at your analysis, Mr$.$ supervisor asked you to include in the comparison the market capitalization weighted average portfolio $($composed by the same stocks$),$ again assuming no rebalancing. What do you conclude? In retrospective, which of the portfolios would be the $2$ best to combine with the risk$-$free rate? Is this in accordance with the analysis done so far? And how does the performance of such portfolio compare to the performance of the market portfolio? Explain. Part $3$ and $4$ important for me$,$ need very short explanation, or guidance to complete, i want to learn.

Take any $5$ or more stocks and use excel to solve. Need short aadescription