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You are an investment advisor and your client would like you to explain to him/her why diversification is important in portfolio constructions. 1) Using Excel,

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You are an investment advisor and your client would like you to explain to him/her why diversification is important in portfolio constructions. 1) Using Excel, draw the efficient frontiers for a market that 1includes the following two assets: Stock Bonds Return 20% 10% Std. Dev. 10% 5% You must draw FIVE frontiers using correlations of -1,-0.5, 0, +0.5, and +1. At least 10 data-points are needed to draw each frontier i.e. use weights of 10%, 20%, 30%. 100% The frontiers must be drawn with Excel i.e. put all the data in tables and use Excel charting function. Handwritten charts are NOT ACCEPTABLE. Your final graph will look like this You must submit excel sheet showing inputs, calculation of ALL 50 points, and a SINGLE graph showing five frontiers. Any other form of submission will NOT be acceptable. You are an investment advisor and your client would like you to explain to him/her why diversification is important in portfolio constructions. 1) Using Excel, draw the efficient frontiers for a market that 1includes the following two assets: Stock Bonds Return 20% 10% Std. Dev. 10% 5% You must draw FIVE frontiers using correlations of -1,-0.5, 0, +0.5, and +1. At least 10 data-points are needed to draw each frontier i.e. use weights of 10%, 20%, 30%. 100% The frontiers must be drawn with Excel i.e. put all the data in tables and use Excel charting function. Handwritten charts are NOT ACCEPTABLE. Your final graph will look like this You must submit excel sheet showing inputs, calculation of ALL 50 points, and a SINGLE graph showing five frontiers. Any other form of submission will NOT be acceptable

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