Question
Which specific combination would deliver the least amount of risk? Use the formula for the minimum variance portfolio (show your work by hand) to get
Which specific combination would deliver the least amount of risk? Use the formula for the minimum variance portfolio (show your work by hand) to get the exact weights, calculate its return, standard deviation and Sharpe ratio (show your work by hand), and mark it by hand on your plot printout.
IBM MSFT S&P500 Date Adj Close Adj Close Adj Close 1/1/2013 166.326 23.72848 1498.11 2/1/2013 170.65 24.03102 1514.68 3/1/2013 175.4404 24.93597 1569.19 4/1/2013 170.82 28.84938 1597.57 5/1/2013 171.0975 30.41822 1630.74 6/1/2013 157.9257 30.31555 1606.28 7/1/2013 161.1733 27.94578 1685.73 8/1/2013 150.6207 29.31498 1632.97 9/1/2013 153.7904 29.41548 1681.55 10/1/2013 148.8324 31.29815 1756.54 11/1/2013 149.2227 33.70231 1805.81 12/1/2013 156.6118 33.31668 1848.36 1/1/2014 147.5192 33.69962 1782.59 2/1/2014 154.6079 34.11821 1859.45 3/1/2014 161.6008 36.77871 1872.34 4/1/2014 164.9422 36.24931 1883.95 5/1/2014 154.7755 36.73384 1923.57 6/1/2014 153.0674 37.67971 1960.23 7/1/2014 161.8493 38.99896 1930.67 8/1/2014 162.3813 41.0501 2003.37 9/1/2014 161.2436 42.15208 1972.29 10/1/2014 139.6431 42.68853 2018.05 11/1/2014 137.7489 43.47047 2067.56 12/1/2014 137.2121 42.50029 2058.9 1/1/2015 131.1144 36.96473 1994.99 2/1/2015 138.495 40.12136 2104.5 3/1/2015 138.2263 37.46738 2067.89 4/1/2015 147.519 44.82079 2085.51 5/1/2015 146.1065 43.18055 2107.39 6/1/2015 142.2341 40.94774 2063.11 7/1/2015 141.6482 43.31279 2103.84 8/1/2015 129.3188 40.36343 1972.18 9/1/2015 127.8178 41.32045 1920.03 10/1/2015 123.5064 49.1439 2079.36 11/1/2015 122.9245 50.74033 2080.41 12/1/2015 122.4756 52.1444 2043.94 1/1/2016 111.0575 51.77785 1940.24 2/1/2016 116.6108 47.82096 1932.23 3/1/2016 120.75 52.28214 2059.74 4/1/2016 131.2067 47.20822 2065.3 5/1/2016 138.2193 50.17115 2096.95 6/1/2016 139.0961 48.77763 2098.86 7/1/2016 145.8752 54.03002 2173.6 8/1/2016 147.7569 54.77355 2170.95 9/1/2016 149.7552 55.24923 2168.27 10/1/2016 151.7954 57.47454 2126.15 11/1/2016 155.8524 57.80066 2198.81 12/1/2016 154.8244 60.00659 2238.83 1/1/2017 162.7806 62.43042 2278.87 2/1/2017 167.7241 61.78342 2363.64 3/1/2017 163.7104 63.98444 2362.72 4/1/2017 169.8546 66.5104 2384.2 5/1/2017 170.8546 67.8511 2411.8 6/1/2017 166.8924 67.35087 2423.41 7/1/2017 169.3258 71.0345 2470.3 8/1/2017 173.9651 73.05708 2471.65 9/1/2017 180.9534 73.17127 2519.36 10/1/2017 200.9542 81.70744 2575.26 11/1/2017 225.8462 82.67991 2584.84 12/1/2017 255.8456 84.44764 2673.61
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