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Weekly prices of NFLX, LLY, BAC, COST and SP500 are given in the Excel file...

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Finance

Weekly prices of NFLX, LLY, BAC, COST and SP500 are given in the Excel file on compass. Estimate the expected weekly returns and the covariance matrix of the returns. You are constructing portfolios using NFLX, LLY, BAC and COST. Assume no short selling. (1). Find the weights of the minimum variance portfolio and the corresponding mean and standard deviation of the portfolio return. (2). Could a portfolio with an expected return of 0.3% be efficient? Why? (3). Construct an efficient portfolio with an expected return of 0.6%. Report the weights and the corresponding standard deviation of the portfolio return. (4). Using SP500 as a proxy for the market portfolio, estimate the beta of LLY.

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