SCREENSHOT EACH FORMULA TO GET THE CALCULATIONS

IN AN EXCEL DOCUMENT SCREENSHOT EACH STEP (WHAT YOU CLICKED ON) TO CREATE THE DATA TABLE AND PLOT THE GRAPH

Based on the data in the spreadsheet Stocks_Data

Calculate the return, risk, Sharpe ratio, covariance, and correlation for stocks of

IBM and META.

For a portfolio constructed by investing 50% of the amount in stocks of IBM and

the remaining amount in stocks of META, calculate the portfolios return, risk, and Sharpe ratio. Comment on the differences between the risk, return, and Sharpe ratios for stocks of IBM and META with the corresponding values of the portfolio calculated in above question. Would you have expected these findings just based on the numbers in problem (a)?

Using three different correlation values -0.9, 0, and 0.9, construct a Data Table analyzing the effect of correlation on the portfolios (same portfolio as in problem b) risk and return profile.

Plot and comment on the three frontiers or the risk-return profiles of the portfolio tabulated above.