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Stocks Percent Price 0 Final price JPM 0,33 152,66 158 NIO...

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Accounting

Stocks Percent Price 0 Final price
JPM 0,33 152,66 158
NIO 0,34 45,04 37,61
AMC 0,33 31,3 45,21

A) Report the overall realized return on your investment portfolio.

Realized return of portfolio=w1*R1+w2*R2+w3*R3+w4*R4

wi=weight of stock i in your portfolio

Ri=realized return of asset i= (Price @ end Price @ beginning)/Price @ beginning

OR

more formally:

R=(P[t+1]-P[t])/P[t]

B) Report the variance-covariance matrix

Take estimates from the other web pages

You can take estimates of volatilities of individual stocks from Reuters, Bloomberg, Yahoo finance or other sources. If you are not quite sure how to estimate covariances between stocks:

You can take estimates of Reuters, Bloomberg or other credible web page.

C) Compute the volatility of your portfolio

Hint: it is easy to compute in matrix form in excel. MMULT command.

Sigma2_p= w_T* Variance-covariance matrix*w

D) Compute Sharpe ratio, assuming risk-free rate of 2%. Interpret Sharpe ratio

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