Use adjusted prices for CVS Health Corporation (CVS), General Dynamics (GD), JPMorgan Chase & Co....
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Use adjusted prices for CVS Health Corporation (CVS), General Dynamics (GD), JPMorgan Chase & Co. (JPM), and Kimberly-Clark Corporation (KMB), from December 31, 1990 to December 31, 2020 to answer the following questions. You can find the prices on Yahoo Finance. Assume risk-free rate to be 2.50%. (Note: You should set the beginning date to be before Dec 1, 1990 to get the Dec price. You can set earlier dates as well.) Use solver to find 16 portfolios (each portfolio is a set of weights with a given return and volatility) on the mean-variance frontier. Start with a target return of 6% and then go up to 22% with 1% increment (the portfolios you create should have returns equal to 6%, 7%, 8%, 9%, and so on). Draw min-variance frontier (x-axis is volatility and y-axis is return) using the return and volatility for the portfolios found in part (a). Find the optimal portfolio (i.e., the weights of the 4 assets in the portfolio) by maximizing the Sharpe ratio of all feasible portfolios.
Use adjusted prices for CVS Health Corporation (CVS), General Dynamics (GD), JPMorgan Chase & Co. (JPM), and Kimberly-Clark Corporation (KMB), from December 31, 1990 to December 31, 2020 to answer the following questions. You can find the prices on Yahoo Finance. Assume risk-free rate to be 2.50%. (Note: You should set the beginning date to be before Dec 1, 1990 to get the Dec price. You can set earlier dates as well.)
Use solver to find 16 portfolios (each portfolio is a set of weights with a given return and volatility) on the mean-variance frontier. Start with a target return of 6% and then go up to 22% with 1% increment (the portfolios you create should have returns equal to 6%, 7%, 8%, 9%, and so on).
Draw min-variance frontier (x-axis is volatility and y-axis is return) using the return and volatility for the portfolios found in part (a).
Find the optimal portfolio (i.e., the weights of the 4 assets in the portfolio) by maximizing the Sharpe ratio of all feasible portfolios.
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