57634519 - (Please submit your model(in Excel and your...

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(Please submit your model (in Excel) and your brief summary (in Word) The Case Rachel Harris is a Charted Financial Analyst (CFA) working at a large wealth management company. One of her clients just inherited $250,000. This investor believes that the industry leaders will provide safe and stable returns. He also believes benefits of diversification. Based on his investing preference, Rachel identifies the following 5 stocks: Wal-Mart (WMT) Citigroup (C) Johnson and Johnson (JNJ) IBM (IBM) Boeing (BA) As an assistant to Rachel, you are asked to collect the monthly prices of each stock from Yahoo Finance from 11/23/2010 to 11/2/2015 (market booming time period), and then finish the following tasks: 1. Calculate monthly returns for each stock 2. Calculate the variance and average return for each stock 3. Construct the covariance matrix of these five stocks 4. Use Excel Solver function to build the efficient frontier (with and
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  • Winter '15
  • Finance, Rachel Harris, optimal risk portfolio

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