DUY DAY today 8p.m NEW YORK TIMES
Intro
You found the expected returns and variance-covariance matrix of returns for 3 stocks:
Amazon Walmart Exxon
E(r) 36.9% 16.8% 4.5%
Amazon Walmart Exxon
Amazon 0.36
Walmart 0.06 0.16
Exxon 0.1 0.07 0.09
Attempt 1/10 for 9.5 pts.
Part 1
1) Find portfolio weights, portfolio standard deviation when E(rp)=20% on the Efficient Frontier.
2) Find portfolio weights, portfolio standard deviation and portfolio expected return for the minimum variance portfolio.
3) Find portfolio weights, portfolio standard deviation and portfolio expected return for the optimal risky portfolio. Assume risk-free rate is 0.5%.
