# Project #57343 - Portfolio Analysis

FIN 4307-001 Portfolio Analysis

Class Project 1: Due Feb 18th Â @Class Time

Â

Part A

The main objective of this project is to make you familiar with the basic calculation of returns, descriptive statistics of returns, portfolioâ€™s mean and variance. Choose 5 companies form http://money.cnn.com/magazines/fortune/fortune500/ but make sure that each companyâ€™s stock price has can be downloaded from Yahoo finance and it has at least fifteen years of historical prices. Download monthly stock prices for these companies from Yahoo finance for period January 2000 to December 2014. Â  Convert each series into returns series and calculate the following for each firm.

1.Mean return for each firm

2.Variance of Â return for each firm

3.Coefficient of variation for each firm

4.Beta Â  Â coefficient Â  Â for Â  Â each Â  Â firm(Ifyouwant,getriskfreerateform http://www.federalreserve.gov/releases/h15/data.htm or Â yahoo finance)

Interpret your results. Write which firm performed best and worst in the sample period. Which firm is the riskiest and which is the least risky.

Part B

5. Â  Construct equally weighted portfolios of these five stocks and calculate portfolio mean return, portfolio variance, portfolio beta coefficient and Sharpe ratio.

6. Â  Pick two stocks from your list and make portfolio frontier by choosing your own set of weights and level the following on this graph.

(a) Chart title and axes levels.

(b) Global minimum variance portfolio. (c) Efficient part of the portfolio frontier.

(d) Tangency portfolio if the risk free rate is rf (some number).

Â

5 stocks of choice is: Allergan Inc. (AGN), The Boeing Company (BA), 3M Company (MMM), Intel Corporation (INTC), Exxon Mobil Corporation (XOM)Â

Â

 Subject Business Due By (Pacific Time) 02/18/2015 12:00 am
TutorRating
pallavi

Chat Now!

out of 1971 reviews
amosmm

Chat Now!

out of 766 reviews
PhyzKyd

Chat Now!

out of 1164 reviews
rajdeep77

Chat Now!

out of 721 reviews
sctys

Chat Now!

out of 1600 reviews

Chat Now!

out of 770 reviews
topnotcher

Chat Now!

out of 766 reviews
XXXIAO

Chat Now!

out of 680 reviews