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Stock January 22, 2021 Closing Price CVS 74.12 FDX 254.09 CMG 1495.73 NLOK 20.67 ZM 383.4 Stock February 22, 2021 Closing Price CVS 70.48 FDX

StockJanuary 22, 2021 Closing Price

CVS 74.12

FDX 254.09

CMG 1495.73

NLOK 20.67

ZM 383.4

StockFebruary 22, 2021 Closing Price

CVS 70.48

FDX 254.67

CMG 1430.54

NLOK 20.51

ZM 394.34

  • Estimate their expected monthly returns and covariance matrix.
  • Assume that the monthly risk-free rate in the market is 0.1%. What are the proportions of each stock and the expected return and standard deviation of the optimal risky portfolio?
  • Plot the efficient frontier for this 5-stock portfolio.

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