Business Finance Homework Help

Assignment 5

In this assignment, follow the steps below and construct an optimal portfolio.

1. Pick six assets (stocks and/or ETFs and/or risk-free asset) you are interested in to analyze. State in your report why you pick these six assets. Are they going to provide significant diversification benefit? In other words, how do you think they are correlated with each other?

2. Select a reasonable historical period you would like to analyze (i.e. past 6 months, past 12 months, past 18 months, etc). Collect historical price data from Yahoo! Finance for each asset.

3. In Excel, construct the optimal portfolio with the six assets you select, with Data Analysis ToolPak and Solver add-in.

4. You may need to change your trading constraints if the solution returned from Step 3 by Solver is not realistic or you are not comfortable with it based on your personal preference.

5. Briefly explain how you would allocate your wealth in your optimal portfolio if you have a total of $30,000 to invest.

6. Write a brief report in a Word file (400 words minimiuim) and briefly describe what you have done in the previous steps.

Please check the link below for the class lectures regarding the assignment.

https://we.tl/t-uTOvNjGw0s