1. On January 15, 1990, you constructed a portfolio consistingof 1,000 shares of General Electronics, 500 shares of Boeing, and1,500 shares of Microsoft. You close the portfolio by selling allshares by March 3, 2020. (20 pt.)

1. What is the original value of the portfolio?
2. What is the portfolio value at the portfolio closing date?
3. Create a graph of portfolio’s value staring from the originaldate to closing date. Show the graph below.
4. Looking at the graph, did you close the portfolio at its peak?If no, what is the maximum value you could have gained if you wouldhave been able to sell the portfolio at the peak. (Hint: Use maxfunction in R, Google is the best resource).
5. Using Chartseries, create a graph from January 2018 to 2020 ofportfolio value. Show the graph below.

At the end, copy your R code in the file.

2. For the period from January 15, 1990 to March 3, 2020, usingweekly stock returns data of the following companies, answer thefollowing questions (20 pt.) –

1. Fill in the following table

	GE	BA	MSFT
CAPM beta
Standard deviation of stockreturns
Correlation of stock returns withthe returns of S&P 500 returns
Sharpe ratio

2. Based on CAPM, find out the consequence of a 10% decrease inmarket return on GE, BA, and MSFT, respectively.
3. Based on Sharpe ratio, which stock are you going to choose fora highly risk averse investor and which stock are you going tochoose for a highly risk-loving investors and why? Explain indetail.