Question 1 :The investment strategy and policy is the responsibility of the client:He must know what they’ve trying to do and understand how the policystatement accomplishes the objective.He must define the long range objectives.He must ensure that portfolio managers are following investment policy.He must determine his target return and the level of risk taken.In our case,it is an individual client who want to appreciate his capital,make it grow all the time.
Question 2 :
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Question 3 :It will be a diversification of 6 stocks in US and 3 stocks in French.
GOOGLEAMAZONDateGOOGLEMONTHLY DIFFERENCEAMAZONAMAZONMONTHLY DIFFERENCEDateSEP 12 2019 (start date)1,234.25SEP 12 2019 (start date)1,843.55SEP 12 2019 (start date)aug 12 20191,174.715.0685%aug 12 20191,784.923.2847%aug 12 2019july 12 20191,144.902.6037%july 12 20192,011.00-11.2422%july 12 2019june 12 20191,077.036.3016%june 12 20191,855.328.3910%june 12 2019may 10 20191,164.27-7.4931%may 10 20191,889.98-1.8339%may 10 2019april 12 20191,217.87-4.4011%april 12 20191,843.062.5458%april 12 2019march 12 20191,193.202.0675%march 12 20191,673.1010.1584%march 12 2019february 12 20191,121.376.4056%february 12 20191,638.012.1422%february 12 2019jan 11 20191,057.196.0708%jan 11 20191,640.56-0.1554%jan 11 2019dec 12 20181,063.68-0.6101%dec 12 20181,663.54-1.3814%dec 12 2018nov 12 20181,038.632.4118%nov 12 20181,636.851.6306%nov 12 2018oct 12 20181,110.08-6.4365%oct 12 20181,788.61-8.4848%oct 12 2018sep 1220181,162.82-4.5355%sep 1220181,990.00-10.1201%sep 122018aug 1020181,237.61-6.0431%aug 1020181,886.305.4975%aug 102018july 1220181,183.484.5738%july 1220181,796.624.9916%july 122018june 1220181,139.323.8760%june 1220181,698.755.7613%june 122018may 1120181,098.263.7386%may 1120181,602.915.9791%may 112018april 1220181,032.516.3680%april 1220181,448.5010.6600%april 122018march 12 20181,164.50-11.3345%march 12 20181,598.39-9.3776%march 12 2018february 12 20181,051.9410.7002%february 12 20181,386.2315.3048%february 12 2018jan 12 20181,122.26-6.2659%jan 12 20181,305.206.2082%jan 12 2018dec 12 20171,040.487.8598%dec 12 20171,165.0812.0266%dec 12 2017
nov 10 20171,028.071.2071%nov 10 20171,125.353.5305%nov 10 2017oct 12 2017987.834.0736%oct 12 20171,000.9312.4304%oct 12 2017sep 12 2017932.075.9824%sep 12 2017982.581.8675%sep 12 2017aug 11 2017914.391.9335%aug 11 2017967.991.5072%aug 11 2017july 12 2017943.83-3.1192%july 12 20171,006.51-3.8271%july 12 2017june 12 2017942.90.0986%june 12 2017964.914.3113%june 12 2017may 12 2017932.221.1457%may 12 2017961.350.3703%may 12 2017april 12 2017824.3213.0896%april 12 2017896.237.2660%april 12 2017march 10 2017843.25-2.2449%march 10 2017852.465.1346%march 10 2017february 10 2017813.673.6354%february 10 2017827.463.0213%february 10 2017jan 12 2017806.360.9065%jan 12 2017813.641.6985%jan 12 2017dec 12 2016789.272.1653%dec 12 2016760.127.0410%dec 12 2016nov 11 2016754.024.6749%nov 11 2016739.012.8565%nov 11 2016oc 12 2016786.14-4.0858%oc 12 2016834.09-11.3992%oc 12 2016sep 12 2016769.022.2262%sep 12 2016771.498.1142%sep 12 2016NOV 29 2019( end date)1304.965.7290%NOV 29 2019( end date)1800.8-2.3189%NOV 29 2019( end date)beta GOOGLE0.9975beta AMAZON1.5496HPR5.7290%HPR-2.3189%std dev147.8202158714std dev431.059065266std devVARIANCE21850.81622027VARIANCE185811.917748VARIANCEQuestion 6 :W1$86,363.64w2$86,363.64w3(w 1/capital )0.090909090909(w 12/capital )0.09090909091(w 3 /capital )
Covariance MatrixGOOGLEAMAZONBRK.BWALMARTAT&TAPPLEGOOGLE21850.8162203AMAZON57283.0529077185811.917747897BRK.B2686.452989927644.02262862654425.939258258247WALMART1632.609644854540.40474135802230.912944135803189.4475033AT&T-415.01330934-1311.14068387346-56.5837588734568-35.1772475313.6610918918917APPLE4279.4360536211892.2018728395558.550845061729317.39797932-76.77327962016071050.26687297297ORANGE53.162290817365.47560497955256.697173114969141.2689322569-0.4843770197589488.71036907322864BNP.PA-564.42950616-2583.37358474919-70.2906245269676-65.0372158420.6606833689189-112.036634525TOTAL295.348932162917.97146069749240.336873694714514.239085123-5.9655212277574967.1445208104456L OREAL3223.938542989533.13421727112388.187897497512280.21110097-66.4012888707998677.084927112911DANONE337.7473406271014.3497513955448.763378725803549.373399762-3.2107937993425895.0397491293828Variance Pt3559.5676226316Sigma Pt59.6621121201018
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Term
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1981, 1979, 1977, 1982, Days of the year
