i need this project done in the next 8hrs

a sample project is attached the data is different so dont copy

if wrongly done or late be sure i will dispute

bid only if you can handle

 

 

 

You will find an Excel workbook called AssignmentData.xlsx which is needed to

 

 

 

 

complete this assignment. It contains weekly index data for five asset classes and one

 

 

 

in-dividual asset (Gold).

 

 

 

Due to the reputation of “Education Institution of America” for producing work-ready

 

 

 

graduates, you are head-hunted by a small asset management company to work parttime

 

 

 

as a portfolio manager whilst you complete your degree.

 

It is your first day on the job and your boss is keen to see how much you really know. She

 

 

 

provides you with a list of five asset classes and tasks you and your team to investigate the

 

 

 

 

efficient asset allocation between these asset classes. Moreover, you are asked to satisfy a

 

 

 

 

 

 

17% expected return target on the portfolio you construct. To get started you decide to

 

 

 

collect historical performance data for the last five years in order to estimate the expected

 

 

 

return and variance-covariance structure of the asset classes (the data in the Excel file).

 

 

 

To perform the asset allocation you decide to construct a minimum variance portfolio. You

 

 

 

recall the 17% expected return target imposed by your boss and note that there was no

 

 

 

mention of short-selling constraints. In order to construct this portfolio you should copy the

 

 

 

assignment data into an Excel workbook and perform the following tasks/answer the

 

 

 

following questions:

 

 

 

 

 

1. (a) Transform the index values into simple weekly returns (you do not need to

 

 

 

report these in your submission).

 

(b) Using the returns data, estimate (and report) the vector of expected returns for

 

 

 

the five asset classes, as well as the variance-covariance matrix of these returns.

 

 

 

These expected returns etc. should be annualized (i.e., in annual units).

 

 

 

 

(c) Report which of the asset classes are efficient and which are inefficient. For each

 

of the inefficient asset classes, find another asset class that dominates it.

 

 

 

 

(d) Compute and report the parameters A, B, C and .

 

 

 

(e) Construct and plot the MVS (with short sales allowed) for expected (annual)

 

 

 

 

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