Use the return data in the Excel file (link below) for various stocks and the market.

a. (5 points) Compute the returns of the data and the statistics for each of the assets (mean return, variance and standard deviation of return)

b. (10 points) Compute the excess returns and then the sample variance-covariance matrix for the six stocks.

c. (10 points) Compute the global minimum variance portfolio (GMVP) weights using the sample variance- covariance matrix.

PRICE DATA FOR STOCKS AND THE S&P500 COMPUTING THE SAMPLE VARIANCE-COVARIANCE MATRIX Variance-covariance matrix Stock 4 Stock 5 Stock 6 HPQ PFE EPB TEVA MSFT AAPL Date Oca. 10 ub. 10 Mar. 10 Nis. 10 May. 10 Haz. 10 Tem. 10 Au. 10 Eyl. 10 Microsoft MSFT 28,18 28,67 29,29 30,54 25,80 23,01 25,81 23,46 24,49 HPQ PFE EPB TEVA MSFT AAPL 1004 GMVP Eki. 10 30,09 26,66 kas. 10 Ara 10 Oca. 11 ub. 11 Mar. 11 Nis. 11 May 11 Haz. 11 Tem. 11 Au. 11 Eyl.11 Eki 11 Kas 11 Ara 11 Oca 12 ub 12 Mar. 12 Nis. 12 May. 12 Haz. 12 Tem. 12 Au. 12 Eyl.12 Eki. 12 Kas. 12 Ara, 12 Stock1 Stock 2 Stock 3 Hewlett- El Paso Packard Pfizer Pipelines HPQ PFE EPB 44,77 16,54 20,68 48,30 15,70 22,23 50,63 15,34 23,95 49,50 14,96 23,53 43,83 13.77 24,02 41,29 12.89 24,96 43,93 13,56 27,77 36,69 14,54 27,61 40,22 15,70 28,28 40,20 15,92 40,09 15,05 29,57 40,33 16,17 29,86 43,77 16,83 31,40 41,79 17,96 34,09 39,32 18,95 32,76 38,75 19,57 33,91 35,88 20,21 31,47 35,05 19,41 31,81 33,87 18,14 32,64 25,07 18.08 34,13 21,74 16,85 32,90 25,76 18,35 31,36 27,06 19,32 30,83 25,05 20,83 32,58 27,21 20.60 33,52 24,61 20,55 34,99 23,29 22.02 33.29 24,20 22,27 32.81 22,16 21,48 31,78 19,77 22,59 32.74 17,93 23,61 34,30 16,59 23,65 35,61 16,90 24,63 36,62 13,72 24,65 35,71 12,87 25,02 37,33 14,25 25,08 36,97 Teva TEVA 53,48 56,77 59,67 55,56 52,03 49,34 46,36 48,22 50,25 49,42 47,85 49,85 52,26 48,11 48,18 43,91 49,11 46,52 45,00 40,12 36,11 39,63 38,63 39,36 44,02 43,97 44,21 44,91 38,70 38,95 40,38 39,33 41,15 40,16 40,35 37,34 25,26 27,91 27,73 26,58 25,39 25,92 25.01 26,00 27,40 26,60 24,89 26,63 25,58 25,96 29,53 31,74 32,26 32,02 29,19 30,59 29,47 30,82 29,76 28,54 26,61 26,71 Apple AAPL 27,44 29,23 33,57 37,30 36,70 35,93 36,75 34,73 40,54 43,00 44,45 46,08 48,47 50,46 49,79 50,02 49,69 47,95 55,78 54,98 54,47 57,83 54,60 57,86 65,21 77,49 85,65 83,43 82,53 83,43 87,25 95,03 95,30 85,05 83,61 76,02 S&P500 AG SPC 1073,87 1104,49 1169,43 1186,69 1089,41 1030,71 1101,60 1049,33 1141,20 1183,26 1180,55 1257,64 1286,12 1327,22 1325,83 1363,61 1345,20 1320,64 1292,28 1218,89 1131,42 1253,30 1246,96 1257,60 1312,41 1365,68 1408,47 1397,91 1310,33 1362,16 1379,32 1406,58 1440,67 1412,16 1416,18 1426,19 PRICE DATA FOR STOCKS AND THE S&P500 COMPUTING THE SAMPLE VARIANCE-COVARIANCE MATRIX Variance-covariance matrix Stock 4 Stock 5 Stock 6 HPQ PFE EPB TEVA MSFT AAPL Date Oca. 10 ub. 10 Mar. 10 Nis. 10 May. 10 Haz. 10 Tem. 10 Au. 10 Eyl. 10 Microsoft MSFT 28,18 28,67 29,29 30,54 25,80 23,01 25,81 23,46 24,49 HPQ PFE EPB TEVA MSFT AAPL 1004 GMVP Eki. 10 30,09 26,66 kas. 10 Ara 10 Oca. 11 ub. 11 Mar. 11 Nis. 11 May 11 Haz. 11 Tem. 11 Au. 11 Eyl.11 Eki 11 Kas 11 Ara 11 Oca 12 ub 12 Mar. 12 Nis. 12 May. 12 Haz. 12 Tem. 12 Au. 12 Eyl.12 Eki. 12 Kas. 12 Ara, 12 Stock1 Stock 2 Stock 3 Hewlett- El Paso Packard Pfizer Pipelines HPQ PFE EPB 44,77 16,54 20,68 48,30 15,70 22,23 50,63 15,34 23,95 49,50 14,96 23,53 43,83 13.77 24,02 41,29 12.89 24,96 43,93 13,56 27,77 36,69 14,54 27,61 40,22 15,70 28,28 40,20 15,92 40,09 15,05 29,57 40,33 16,17 29,86 43,77 16,83 31,40 41,79 17,96 34,09 39,32 18,95 32,76 38,75 19,57 33,91 35,88 20,21 31,47 35,05 19,41 31,81 33,87 18,14 32,64 25,07 18.08 34,13 21,74 16,85 32,90 25,76 18,35 31,36 27,06 19,32 30,83 25,05 20,83 32,58 27,21 20.60 33,52 24,61 20,55 34,99 23,29 22.02 33.29 24,20 22,27 32.81 22,16 21,48 31,78 19,77 22,59 32.74 17,93 23,61 34,30 16,59 23,65 35,61 16,90 24,63 36,62 13,72 24,65 35,71 12,87 25,02 37,33 14,25 25,08 36,97 Teva TEVA 53,48 56,77 59,67 55,56 52,03 49,34 46,36 48,22 50,25 49,42 47,85 49,85 52,26 48,11 48,18 43,91 49,11 46,52 45,00 40,12 36,11 39,63 38,63 39,36 44,02 43,97 44,21 44,91 38,70 38,95 40,38 39,33 41,15 40,16 40,35 37,34 25,26 27,91 27,73 26,58 25,39 25,92 25.01 26,00 27,40 26,60 24,89 26,63 25,58 25,96 29,53 31,74 32,26 32,02 29,19 30,59 29,47 30,82 29,76 28,54 26,61 26,71 Apple AAPL 27,44 29,23 33,57 37,30 36,70 35,93 36,75 34,73 40,54 43,00 44,45 46,08 48,47 50,46 49,79 50,02 49,69 47,95 55,78 54,98 54,47 57,83 54,60 57,86 65,21 77,49 85,65 83,43 82,53 83,43 87,25 95,03 95,30 85,05 83,61 76,02 S&P500 AG SPC 1073,87 1104,49 1169,43 1186,69 1089,41 1030,71 1101,60 1049,33 1141,20 1183,26 1180,55 1257,64 1286,12 1327,22 1325,83 1363,61 1345,20 1320,64 1292,28 1218,89 1131,42 1253,30 1246,96 1257,60 1312,41 1365,68 1408,47 1397,91 1310,33 1362,16 1379,32 1406,58 1440,67 1412,16 1416,18 1426,19