Calculate expected return on stock

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Reference no: EM133111726

Download to a spreadsheet the last 5 years of monthly adjusted stock prices for 2 different stocks.

a. Calculate expected return on each stock.

b. Find the set of efficient portfolios and draw a figure similar to Figure 8.4 from the book. Assume that you cannot borrow or lend.

c. Find a minimum variance and an optimal risky portfolio (assume risk-free rate of 0.079%). Draw a figure similar to Figure 8.5.

Reference no: EM133111726

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