You are assigned with five stocks (See the excel file titled “Companies assigned to students”) and you are expected to build the investment portfolios using those five stocks. Note that I showed you an example of a three-stock portfolio in the attached excel file. You are expected to apply the same concepts to the five-stock portfolios.

Please collect monthly stock price for the five companies that you are assigned from FINANCE.YAHOO.COM and employ the data time range from **Jan 1, 2015 to June 30, 2021**. Then using the risk-free rate of 0.35%, you are expected to develop the complete portfolio and develop the efficient frontier of these **six securities (T-bill and five stocks).** Following are the procedure in details:

- Collect monthly stock price data from Finance.YAHOO.COM. The time range for the date should be from
**Jan 1, 2015 to June 30, 2021**. - Compute monthly stock returns for each stock ( monthly rate of return = (P1 – P0) /P0; P is monthly adjusted close price). Then compute mean and standard deviation of stock returns for each company (See my excel example with the sheet entitled ‘Data’)
- Develop Table of Covariance of these five stocks (See my excel example with the sheet entitled ‘Data’)
- Develop Efficient Frontier for all risky portfolios constructed with 5 assigned stocks (See my excel example with the sheet entitled ‘EF’ and ‘Graph’)
- Find the Minimum-Variance risky portfolio (See my excel example with the sheet entitled ‘MVP’)
- Find the Efficient portfolios including a risk free asset with risk free rate of 0.35% (See my excel example with the sheet entitled ‘Sharpe Ratio for CML’ )
- Draw the capital market line (CML) (See my example with the sheet entitled ‘Sharpe Ratio for CML’ and ‘Graph’)