task1.csvstores the monthly price and return of NASDQ largest 20 stocks from Jan2016 to Dec2019. Please write a report addressing the following tasks:

A. Construct two types of index for the 20 stocks: equally-weighted index and valueweighted index. Draw line plots for the two indices. (5%)

B. Using the given 20 stocks, construct an efficient frontier. (5%)

C. Find the minimum variance portfolio. What are the return and variance of this portfolio? (5%)

D. Assume risk free rate is 0.1% (monthly), find the tangent portfolio. What are weights of each stock for the tangent portfolio? What are the return and variance of this portfolio? (5%)

Note: Please include your code in Appendix. The variable descriptions are:

PERMNO: code for the stock. date: date of each month end

TICKER: ticker of the stock

COMNAM: company name

PRC: close price of the stock

RET: holding period return

SHROUT: total shares outstanding

Holding period return following as:

DENTSPLY INTERNATIONAL INC NEW	YANDEX N V	DIAMONDBACK ENERGY INC	ALLIANT ENERGY CORP	MYLAN INC	COGNEX CORP	TRIMBLE NAVIGATION LTD	UNIVERSAL DISPLAY CORP	IAC INTERACTIVECORP	TRACTOR SUPPLY CO NEW
-0.060916	-0.170935	0.154065	0.041253	-0.057123	-0.110815	-0.101733	0.148108	0.002632	0.029815
0.05967	0.104768	0.032179	-0.073021	0.078551	0.216054	0.096476	0.07941	0.111731	0.087594
-0.038625	-0.078116	0.079062	-0.009434	0.035325	0.109644	-0.03596	0.359407	0.000742	-0.034725
0.002162	0.268711	0.074571	-0.031429	0.217523	-0.094777	0.009127	-0.057326	0.03483	0.011756
0.020294	-0.06289	-0.057648	0.013726	0.00512	0.124304	-0.078254	0.218743	0.080063	0.014873
-0.007927	-0.155851	-0.03123	-0.058401	-0.065675	-0.045572	0.000853	-0.036865	0.061143	0.032132
0.103977	-0.086071	-0.10719	0.075191	-0.174919	-0.058836	-0.015345	-0.077711	-0.030128	0.028686
-0.079072	-0.122933	0.01471	-0.078686	-0.114306	-0.214491	-0.181818	-0.227835	-0.092156	-0.075767
-0.033724	-0.120492	-0.054034	0.032116	-0.188143	-0.031496	-0.131217	-0.079805	-0.0649	-0.011605

month	mrp	SMB	HML	rf
201801	5.58	-3.03	-1.37	0.11
201802	-3.65	0.26	-1.19	0.11
201803	-2.35	3.95	-0.12	0.12
201804	0.29	1.12	0.54	0.14
201805	2.65	5.23	-3.16	0.14
201806	0.48	1.18	-2.38	0.14
201807	3.19	-2.17	0.43	0.16
201808	3.44	1.15	-4.08	0.16
201809	0.06	-2.37	-1.3	0.15
201810	-7.68	-4.76	3.44	0.19
201811	1.69	-0.79	0.25	0.18
201812	-9.55	-2.63	-1.47	0.19