Question
Plot the opportunity set of risky assets in Excel. Then vary the correlation between stocks and bonds from + 1 to -1 and describe the
Plot the opportunity set of risky assets in Excel.
Then vary the correlation between stocks and bonds from + 1 to -1 and describe the changes in the shape of the efficient frontier as you do so.
Upload the Excel file that contains the table & graph.
Make sure to include in the Excel file submission, a description of theefficient frontier's shape as you vary the correlation.
Use the table below for the calculations, please include an excel file and the formulas used to solve the problem
Stock Allocation Bond Allocation Return Risk Sharp Ratio
0% 100%
5% 95%
10% 90%
15% 85%
20% 80%
25% 75%
30% 70%
35% 65%
40% 60%
45% 55%
50% 50%
55% 45%
60% 40%
65% 35%
70% 30%
75% 25%
80% 20%
85% 15%
90% 10%
95% 5%
100% 0%
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