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Please provide MATLAB code to solve these finance question.. Question: Imagine you are managing a diversified investment portfolio containing 100 stocks from various sectors. To
Please provide MATLAB code to solve these finance question..
Question: Imagine you are managing a diversified investment portfolio containing 100 stocks from various sectors. To assess the portfolio's performance, you want to incorporate both financial metrics and mechanical engineering principles. Each stock in your portfolio has a certain beta value, representing its sensitivity to market movements. These beta values were obtained through rigorous analysis and represent the stocks' mechanical stability in times of market turbulence. Here are the beta values for the 100 stocks in your portfolio: \( \begin{array}{l}\text { beta_values }=[1.15,0.85,1.02,0.95,1.25,0.72,0.98,1.10,1.05,0.90 \text {, } \\ 0.78,1.20,0.88,1.15,1.05,0.92,1.10,0.98,1.08,1.12 \text {, } \\ 1.22,0.75,0.93,1.30,0.85,0.96,1.18,1.08,0.92,1.05 \text {, } \\ 1.15,0.97,1.10,1.25,0.78,1.08,0.92,0.99,1.12,1.28 \text {, } \\ 0.85,1.15,1.10,0.92,1.02,1.05,0.98,0.90,1.20,1.25 \text {, } \\ 1.10,0.88,0.95,1.15,0.75,1.30,0.97,0.85,1.08,1.18 \text {, } \\ 0.93,1.22,0.72,1.05,0.78,0.92,0.98,1.08,1.05,1.15 \text {, } \\ 1.10,1.25,1.20,0.96,0.90,1.02,0.85,0.92,0.99,1.05 \text {, } \\ 0.88,1.28,0.75,1.12,1.10,1.08,1.15,0.78,0.97,0.92 \text {, } \\ 1.30,0.85,0.93,1.05,0.98,0.90,1.05,1.10,1.15,0.72 \text {, } \\ 0.95,1.20,1.22,0.92,1.25,0.85,1.08,0.78,1.18,0.97] \\\end{array} \) Now, for your question: Using the provided beta values and assuming a risk-free rate of 2%, write MATLAB code to calculate the following: 1. The expected return of the entire portfolio using the Capital Asset Pricing Model (CAPM). 2. The portfolio's standard deviation, which represents its overall risk. 3. Determine the proportion of your portfolio that should be invested in a risk-free asset to achieve an expected portfolio return of 8%, considering that the portfolio's standard deviation should not exceed 12%Step by Step Solution
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