Write an r program to find the efficient frontier

Reference no: EM131064800

Write an R program to find the efficient frontier, the tangencyportfolio, and the minimum variance portfolio, and plot on "reward-riskspace" the location of each of the six stocks, the efficient frontier, the tangencyportfolio, and the line of efficient portfolios. Use the constraints that-0.1 = wj = 0.5 for each stock. The first constraint limits short sales butdoes not rule them out completely. The second constraint prohibits more than50% of the investment in any single stock. Assume that the annual risk-freerate is 3% and convert this to a daily rate by dividing by 365, since interestis earned on trading as well as nontrading days.

Reference no: EM131064800

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