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Risk Return & Portfolio Analysis

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chandreshpadmani9993
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20 views1 page

Risk Return & Portfolio Analysis

Uploaded by

chandreshpadmani9993
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment on Risk Return and Portfolio Construction

• Obtain annual closing prices of the selected stocks. Use adjusted closing prices. Have at least 11
years of data.
• Compute annual returns and average returns. Also, compute the riskiness i.e. standard deviation
of returns. Compare this with the market index. Give your observations.
• Compute geometric mean returns. Compare with arithmetic mean returns.
• Construct 10 different portfolios with another company (from a different sector) viz. 5% in
company1 and 95% in company2 and so on. Ensure that the Correlation of returns between two
stocks is < 0.7. This is to ensure the advantage of diversification is reflected.
• Compute return and risk for each portfolio. Identify the best portfolio from the list. Construct
the minimum variance portfolio (read from the book).
• Write a brief note on your learning from this exercise.
• Submit hard copies of the assignment. It should be well-structured, neat, and brief. Restrict to 3
pages (max). Standard font Times New Roman, 12 points.
• Cover page required. Don’t give Data in the pdf/word report. Email the spreadsheets.

SUBMISSION DATE: 20TH NOVEMBER 2023, EOD.

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