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Suppose you have a four-stock portfolio, including the following stocks:Apple,Google, IBM and Tesla. Find the monthly stock returns of the following two stocks: Google and

Suppose you have a four-stock portfolio, including the following stocks:Apple,Google, IBM and Tesla. Find the monthly stock returns of the following two stocks: Google and IBM, for years 2018, 2019 and 2020. You can find the returns from Yahoo finance.

  • Calculate the mean and standard deviation of these companies stock.
  • Calculate the covariance of these stocks returns
  • Calculate the minimum variance portfolio using Excel.
  • Assume the risk-free rate is 5%, calculate the optimal portfolio using Excel. Assume that there are no short-sale constraints.
  • Assume the risk-free rate is 5%, calculate the optimal portfolio using Excel. Assume that there are short-sale constraints. (Weights must be positive)

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