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RETURNS Month Stock1 Stock2 Stock3 1 0.0616 0.0649 0.12745 2 -0.003 0.098 0.08696 3 0.2208 -0.124 0.0976 4 0.0186 0.001 0.18978 5 -0.107 0.0866 -0.01841

RETURNS
Month Stock1 Stock2 Stock3
1 0.0616 0.0649 0.12745
2 -0.003 0.098 0.08696
3 0.2208 -0.124 0.0976
4 0.0186 0.001 0.18978
5 -0.107 0.0866 -0.01841
6 -0.038 -0.046 -0.14875
7 -0.061 0.001 0.01471
8 0.1173 -0.033 0.2971
9 -0.117 -0.061 0.0905
10 -0.026 0.0824 -0.09744
11 -0.081 -0.141 -0.0625
12 0.163 0.0636 0.12242
13 0.0191 0.0689 0.2
14 0.0785 0.0455 0.12613
15 0.0116 0.023 0.0528
16 -0.046 0.1255 0.04943
17 -0.053 0.0757 0.00725
18 0.0671 -0.11 -0.11065
19 0.0299 0.0307 0.05668
20 0.0095 -0.127 -0.06897
21 0.0231 0.0803 0.1121
5) Create potfolio weight table
Portfolio No. Weight 1 Weight 2 Weight3
1 0.00% 0% 100%
2 0.00% 20% 80%
3 0.00% 40% 60%
4 0.00% 60% 40%
5 0.00% 80% 20%
6 0.00% 100% 0%
7 20.00% 0% 80%
8 20.00% 20% 60%
9 20.00% 40% 40%
10 20.00% 60% 20%
11 20.00% 80% 0%
12 40.00% 0% 60%
13 40.00% 20% 40%
14 40.00% 40% 20%
15 40.00% 60% 0%
16 60.00% 0% 40%
17 60.00% 20% 20%
18 60.00% 40% 0%
19 80.00% 0% 20%
20 80.00% 20% 0%
21 100.00% 0% 0%

Standard deviation of each stock

Stock1 Stock2 Stock3
7.21% 7.61% 11.01%

now create columns for

  1. Portfolio return
  2. Portfolio risk
  3. Find the feasible set.
  4. Find the efficient set

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