Order ID:89JHGSJE83839 | Style:APA/MLA/Harvard/Chicago | Pages:5-10 |
Instructions:
Assignment for BUS550 portfolio formation
This is a Word file containing a detailed write-up of your portfolio development, including calculations.
I copied and pasted from your Excel file into it.
1. Choose three publicly traded firms from various industries to invest in.
Describe the criteria used to choose those securities.
2. Get monthly data on your stocks’ adjusted closing prices from Yahoo Finance.
For the past ten years, I’ve worked in finance.
Calculate the yearly rate of return of each security’s mean, variance, and standard deviation.
Calculate the correlation coefficient between the annual rates of return of any conceivable pair of securities.
Decide how much of your first investment you want to put into each of the five (5) securities (weights in the portfolio). Create embedded equations that, when the weights are entered, provide statistical attributes for the portfolio. Take note of the portfolio’s yearly rate of return’s mean, standard deviation, and CV.
Find the weighting combination that reduces the portfolio’s CV. How the ideal portfolio’s CV compares to that of its parts. What is the portfolio’s expected rate of return, as well as the standard deviation of the rate of return?
Select multiple values within the portfolio’s standard deviation range, and locate the corresponding point on the efficient frontier for each value by determining the weights that maximize the portfolio’s expected rate of return. After that, design your portfolio’s efficient frontier.
Assume you put $1,000,000 into the portfolio at the start, and the portfolio’s annual rate of return has a normal distribution. What is the distribution of the portfolio’s return 20 years after it was created? Please provide a graph showing the portfolio return distribution.
Be specific and detailed in your explanations and definitions. Make a comment on your findings. When necessary, include content references. Detail your work and describe it in your own words. Six (6) peer-reviewed in-text citations and references should be used to back up your claims (s).
RUBRIC |
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Excellent Quality 95-100%
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Introduction
45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Literature Support 91-84 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met. |
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Average Score 50-85% |
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided. |
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration. |
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met. |
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Poor Quality 0-45% |
37-1 points The background and/or significance are missing. No search history information is provided. |
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration. |
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met |
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Assignment for BUS550 portfolio formation |
Assignment for BUS550 portfolio formation