This assignment is concerned with applying the ideas and concepts related to building an investment portfolio. It is built on the basis of chapter five and six of the course. Therefore, each student must do the following: Extracting data representing the monthly adjusted closing prices for any two companies listed on Yahoo Finance, starting from 1/1/2019 until 30/6/2021 Calculate the monthly return for both companies Calculate the expected return for both companies Gradually put the relative weight of both companies Calculate the variance for each company Calculate the covariance of the portfolio Calculate the portfolio's correlation coefficient Calculate the expected return for the portfolio Calculate the variance for the portfolio Calculate market index return Calculate portfolio beta Calculate minimum variance for the portfolio Draw the curve of the portfolio Amazon.com, Inc. (AMZN) Open 1465.2 1638.88 Close 1718.73 1639.83 Adj Close 1718.73 1639.83 1780.75 Volume 134001700 80936900 1655.13 1780.75 100832200 1926.52 81239200 1800.11 1933.09 1760.01 1926.52 1775.0699 1775.0699 98214400 74746500 1893.63 1893.63 1922.98 1866.78 1776.29 73148800 79771200 1871.72 1770 1866.78 1776.29 1735.91 1776.66 High Low 1736.41 1460.930054 1673.0601 1566.76001 1823.75 1586.569946 1956.34 1798.72998 1964.4 1772.699951 1935.2 1672 2035.8 1849.439941 1897.92 1743.51001 1853.66 1709.219971 1798.85 1685.060059 1824.6899 1722.709961 1901.4 1735 2055.72 1815.339966 2185.95 1811.130005 1996.33 1626.030029 2475 1889.150024 2525.45 2256.379883 2796 2437.129883 1735.91 61172900 70360500 1746 1776.66 1800.8 52076200 1788.01 1804.4 1800.8 1847.84 1847.84 1875 2008.72 2008.72 1883.75 68149600 84698300 92510100 2010.6 Date 1/1/2019 2/1/2019 3/1/2019 4/1/2019 5/1/2019 6/1/2019 7/1/2019 8/1/2019 9/1/2019 10/1/2019 11/1/2019 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2021 2/1/2021 3/1/2021 4/1/2021 5/1/2021 6/1/2021 1883.75 1949.72 1949.72 163809100 124609800 1906.49 1932.97 2336.8 2448 82584400 87818300 127502000 83516600 2757.99 3344.29 2754 3180.51 3495 3073 3552.25 3489.5801 3208 2871 3019 2474 2474 2442.3701 2442.3701 2758.8201 2758.8201 3164.6799 3164.6799 3450.96 3450.96 3148.73 3148.73 3036.1499 3036.1499 3168.04 3168.04 3256.9299 3256.9299 3206.2 3206.2 3092.9299 3092.9299 3094.0801 3094.0801 115899300 116226100 3496.24 3061.74 90810500 3366.8 3350.6499 3188.5 3363.8899 3270 3242.3601 2950.120117 3072.820068 3086 3036.699951 2881 77556200 71528900 72107000 3434 3127.8899 3182 78188000 3117.9399 3467.4199 3554 3486.6499 3115.550049 3127.370117 3172.199951 3467.4199 3223.0701 76839600 75183900 3484.73 3223.0701 3243.5 3524.8601 3440.1599 3440.1599 67011000 Berkshire Hathaway Inc. (BRK-B) Close Open 201.73 206.52 High 208.01 209.4 205.54 201.3 Volume 99687600 80023200 89064500 203.15 Low 191.039993 198.210007 197.029999 202 197.080002 196.889999 207.75 200.89 Adj Close 205.539993 201.300003 200.889999 216.710007 197.419998 213.169998 205.429993 202.16 217.32 216.71 64254100 88800700 217.22 219.16 197.42 197.62 213.33 213.17 72123900 214.25 216.58 204.360001 205.43 69209000 205.63 206.98 203.41 203.410004 96629400 201.19 214.58 208.02 208.020004 208.94 213.71 212.58 213.55 223.37 220.3 195.399994 200.190002 201.330002 213.399994 216.399994 221.110001 199.679993 159.5 212.580002 220.300003 226.5 78363900 78088100 72096700 79910300 79813500 95269700 226.5 220.6 227.51 228.23 231.61 230.08 224.429993 224.43 206.34 225.48 Date 1/1/2019 2/1/2019 3/1/2019 4/1/2019 5/1/2019 6/1/2019 7/1/2019 8/1/2019 9/1/2019 10/1/2019 11/1/2019 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2021 2/1/2021 3/1/2021 4/1/2021 5/1/2021 6/1/2021 206.339996 218.8 182.83 182.830002 276783400 207.25 176.18 174.190002 187.36 187.360001 151275200 197.23 187.28 185.21 167.039993 185.58 185.580002 143985200 185.53 203.33 178.51 172082600 178.509995 195.779999 178.41 196.67 195.78 197.28 219.45 218.04 218.039993 212.94 174.630005 177.339996 196 206.580002 197.809998 203.059998 221.259995 223.24 217.43 212.940002 216.92 214.3 204.84 230.23 125965100 102255500 115310800 91607500 104416400 124260900 201.9 201.899994 228.910004 234.99 228.91 232.28 231.87 231.869995 227.869995 227.87 231.73 229.97 236.24 250.56 226.100006 228.039993 103322000 85703800 240.51 240.509995 246.86 267.5 243.229996 255.47 137911600 255.74 277.79 254.800003 274.95 255.470001 274.950012 289.440002 84991800 278.55 295.08 276.779999 289.44 98714200 109192200 291.52 293.27 272.459991 277.92 277.920013 This assignment is concerned with applying the ideas and concepts related to building an investment portfolio. It is built on the basis of chapter five and six of the course. Therefore, each student must do the following: Extracting data representing the monthly adjusted closing prices for any two companies listed on Yahoo Finance, starting from 1/1/2019 until 30/6/2021 Calculate the monthly return for both companies Calculate the expected return for both companies Gradually put the relative weight of both companies Calculate the variance for each company Calculate the covariance of the portfolio Calculate the portfolio's correlation coefficient Calculate the expected return for the portfolio Calculate the variance for the portfolio Calculate market index return Calculate portfolio beta Calculate minimum variance for the portfolio Draw the curve of the portfolio Amazon.com, Inc. (AMZN) Open 1465.2 1638.88 Close 1718.73 1639.83 Adj Close 1718.73 1639.83 1780.75 Volume 134001700 80936900 1655.13 1780.75 100832200 1926.52 81239200 1800.11 1933.09 1760.01 1926.52 1775.0699 1775.0699 98214400 74746500 1893.63 1893.63 1922.98 1866.78 1776.29 73148800 79771200 1871.72 1770 1866.78 1776.29 1735.91 1776.66 High Low 1736.41 1460.930054 1673.0601 1566.76001 1823.75 1586.569946 1956.34 1798.72998 1964.4 1772.699951 1935.2 1672 2035.8 1849.439941 1897.92 1743.51001 1853.66 1709.219971 1798.85 1685.060059 1824.6899 1722.709961 1901.4 1735 2055.72 1815.339966 2185.95 1811.130005 1996.33 1626.030029 2475 1889.150024 2525.45 2256.379883 2796 2437.129883 1735.91 61172900 70360500 1746 1776.66 1800.8 52076200 1788.01 1804.4 1800.8 1847.84 1847.84 1875 2008.72 2008.72 1883.75 68149600 84698300 92510100 2010.6 Date 1/1/2019 2/1/2019 3/1/2019 4/1/2019 5/1/2019 6/1/2019 7/1/2019 8/1/2019 9/1/2019 10/1/2019 11/1/2019 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2021 2/1/2021 3/1/2021 4/1/2021 5/1/2021 6/1/2021 1883.75 1949.72 1949.72 163809100 124609800 1906.49 1932.97 2336.8 2448 82584400 87818300 127502000 83516600 2757.99 3344.29 2754 3180.51 3495 3073 3552.25 3489.5801 3208 2871 3019 2474 2474 2442.3701 2442.3701 2758.8201 2758.8201 3164.6799 3164.6799 3450.96 3450.96 3148.73 3148.73 3036.1499 3036.1499 3168.04 3168.04 3256.9299 3256.9299 3206.2 3206.2 3092.9299 3092.9299 3094.0801 3094.0801 115899300 116226100 3496.24 3061.74 90810500 3366.8 3350.6499 3188.5 3363.8899 3270 3242.3601 2950.120117 3072.820068 3086 3036.699951 2881 77556200 71528900 72107000 3434 3127.8899 3182 78188000 3117.9399 3467.4199 3554 3486.6499 3115.550049 3127.370117 3172.199951 3467.4199 3223.0701 76839600 75183900 3484.73 3223.0701 3243.5 3524.8601 3440.1599 3440.1599 67011000 Berkshire Hathaway Inc. (BRK-B) Close Open 201.73 206.52 High 208.01 209.4 205.54 201.3 Volume 99687600 80023200 89064500 203.15 Low 191.039993 198.210007 197.029999 202 197.080002 196.889999 207.75 200.89 Adj Close 205.539993 201.300003 200.889999 216.710007 197.419998 213.169998 205.429993 202.16 217.32 216.71 64254100 88800700 217.22 219.16 197.42 197.62 213.33 213.17 72123900 214.25 216.58 204.360001 205.43 69209000 205.63 206.98 203.41 203.410004 96629400 201.19 214.58 208.02 208.020004 208.94 213.71 212.58 213.55 223.37 220.3 195.399994 200.190002 201.330002 213.399994 216.399994 221.110001 199.679993 159.5 212.580002 220.300003 226.5 78363900 78088100 72096700 79910300 79813500 95269700 226.5 220.6 227.51 228.23 231.61 230.08 224.429993 224.43 206.34 225.48 Date 1/1/2019 2/1/2019 3/1/2019 4/1/2019 5/1/2019 6/1/2019 7/1/2019 8/1/2019 9/1/2019 10/1/2019 11/1/2019 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2021 2/1/2021 3/1/2021 4/1/2021 5/1/2021 6/1/2021 206.339996 218.8 182.83 182.830002 276783400 207.25 176.18 174.190002 187.36 187.360001 151275200 197.23 187.28 185.21 167.039993 185.58 185.580002 143985200 185.53 203.33 178.51 172082600 178.509995 195.779999 178.41 196.67 195.78 197.28 219.45 218.04 218.039993 212.94 174.630005 177.339996 196 206.580002 197.809998 203.059998 221.259995 223.24 217.43 212.940002 216.92 214.3 204.84 230.23 125965100 102255500 115310800 91607500 104416400 124260900 201.9 201.899994 228.910004 234.99 228.91 232.28 231.87 231.869995 227.869995 227.87 231.73 229.97 236.24 250.56 226.100006 228.039993 103322000 85703800 240.51 240.509995 246.86 267.5 243.229996 255.47 137911600 255.74 277.79 254.800003 274.95 255.470001 274.950012 289.440002 84991800 278.55 295.08 276.779999 289.44 98714200 109192200 291.52 293.27 272.459991 277.92 277.920013