Below is actual price and dividend data for three companies for each of seven months. Security A Security...

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Finance

Below is actual price and dividend data for three companies foreach of seven months.
Security A Security B Security C
Time Price Dividend Price Dividend Price Dividend
1 $48.27 $25.50 $178.00
2 $49.10 $23.85 $165.00
3 $52.60 $2.50 $19.95 $2.50 $174.00 $15.00
4 $51.35 $24.65 $182.00
5 $53.25 $25.10 $183.00
6 $53.92 $2.25 $22.78 $2.50 $187.00 $12.50
7 $52.00 $26.18 $193.00
Assuming short selling is allowed:
                                i. For securities 1 and 2 find the composition, standard deviation,and expected return of that portfolio that has minimum risk.
                              ii. On the same graph plot the expected return and standarddeviation for all possible combinations of securities 1 and 2
                             iii. Assuming that investors prefer more to less and are riskavoiders, indicate those sections of the diagram in part ii) thatare efficient.
                            iv. Repeat steps i), ii) and iii) for all other possible pairwisecombinations of securities in Problem 1.

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Below is actual price and dividend data for three companies foreach of seven months.Security ASecurity BSecurity CTimePriceDividendPriceDividendPriceDividend1$48.27$25.50$178.002$49.10$23.85$165.003$52.60$2.50$19.95$2.50$174.00$15.004$51.35$24.65$182.005$53.25$25.10$183.006$53.92$2.25$22.78$2.50$187.00$12.507$52.00$26.18$193.00Assuming short selling is allowed: i. For securities 1 and 2 find the composition, standard deviation,and expected return of that portfolio that has minimum risk. ii. On the same graph plot the expected return and standarddeviation for all possible combinations of securities 1 and 2 iii. Assuming that investors prefer more to less and are riskavoiders, indicate those sections of the diagram in part ii) thatare efficient. iv. Repeat steps i), ii) and iii) for all other possible pairwisecombinations of securities in Problem 1.

Below is actual price and dividend data for three companies foreach of seven months.

	Security A		Security B		Security C
Time	Price	Dividend	Price	Dividend	Price	Dividend
1	$48.27		$25.50		$178.00
2	$49.10		$23.85		$165.00
3	$52.60	$2.50	$19.95	$2.50	$174.00	$15.00
4	$51.35		$24.65		$182.00
5	$53.25		$25.10		$183.00
6	$53.92	$2.25	$22.78	$2.50	$187.00	$12.50
7	$52.00		$26.18		$193.00

Assuming short selling is allowed:
i. For securities 1 and 2 find the composition, standard deviation,and expected return of that portfolio that has minimum risk.
ii. On the same graph plot the expected return and standarddeviation for all possible combinations of securities 1 and 2
iii. Assuming that investors prefer more to less and are riskavoiders, indicate those sections of the diagram in part ii) thatare efficient.
iv. Repeat steps i), ii) and iii) for all other possible pairwisecombinations of securities in Problem 1.