Compute monthly stock returns and standard deviation
You are assigned with five stocks (See the assigned firm name and ticker on BB) and you are expected to build the investment opportunity set using those five stocks. Please collect monthly stock price from FINANCEYAHOO and employ the data range from Jan 1, 2015 to June 30, 2019. Then using the risk-free rate of 0.33%, you are expected to develop the complete portfolio and develop the efficient frontier of these six securities (T-bill and five stocks).
1) Collect monthly stock price data from Jan 1, 2015 to June 30, 2019 (See my example with the sheet entitled Data)
2) Compute monthly stock returns and standard deviation (See my example with the sheet entitled Data)
3) Develop Table of Covariance of these five stocks (See my example with the sheet entitled Data)
4) Find the Minimum-Variance risky portfolio (See my example with the sheet entitled MVP)
5) Find the Efficient Risky portfolios (See my example with the sheet entitled EF , Result, and Graph)
6) Develop the capital market line using T-bill rate of 0.33% (See my example with the sheet entitled MVP, Result, and Graph)
Sheet1
Last Name | First Name | Username | STOCK 1 | STOCK 2 | STOCK 3 | STOCK 4 | STOCK 5 | |||||
Company Name | Ticker | Company Name | Ticker | Company Name | Ticker | Company Name | Ticker | Company Name | Ticker | |||
Abnabood | Mohanad | 6143419 | Genpact Limited | G | Aurora Cannabis Inc. | ACB | Barnes Group Inc. | B | FuelCell Energy, Inc | FCEL | Macy’s, Inc. | M |
Alamoudi | Sultan | 5994439 | Exxon Mobil | XOM | Walmart | WMT | Verizon Communications | VZ | Tyson Foods | TSN | Target Corp | TGT |
Alanazi | Sultan Salem | 6368215 | Walmart | WMT | Verizon Communications | VZ | Valero Energy Corporation | VLO | Target Corp | TGT | AT&T Inc | T |
Albuainain | Saud | 5396790 | Verizon Communications | VZ | Valero Energy Corporation | VLO | Tyson Foods | TSN | AT&T Inc | T | Sony Corporation | SNE |
Aldamigh | Fidaa | 6147215 | Valero Energy Corporation | VLO | Tyson Foods | TSN | Target Corp | TGT | Sony Corporation | SNE | J.M. Smucker | SJM |
Aljebreen | Ahmed | 6139961 | Tyson Foods | TSN | Target Corp | TGT | AT&T Inc | T | J.M. Smucker | SJM | Sprint Corp | S |
Aljoudi | Raad | 6123763 | Target Corp | TGT | AT&T Inc | T | Sony Corporation | SNE | Sprint Corp | S | Polo Ralph Lauren | RL |
Almansoori | Maran | 7105703 | AT&T Inc | T | Sony Corporation | SNE | J.M. Smucker | SJM | Polo Ralph Lauren | RL | Proctor Gamble Co. | PG |
Almansoori | Salem | 7105716 | Sony Corporation | SNE | J.M. Smucker | SJM | Sprint Corp | S | Proctor Gamble Co. | PG | Pepsico Inc. | PEP |
Almazrouei | Mohamed | 6826957 | J.M. Smucker | SJM | Sprint Corp | S | Polo Ralph Lauren | RL | Pepsico Inc. | PEP | Northern Oil and Gas, Inc | NOG |
Almazrua | Ahmed | 6145109 | Sprint Corp | S | Polo Ralph Lauren | RL | Proctor Gamble Co. | PG | Northern Oil and Gas, Inc | NOG | Nike | NKE |
Almutairi | Sultan | 6742327 | Polo Ralph Lauren | RL | Proctor Gamble Co. | PG | Pepsico Inc. | PEP | Nike | NKE | McCormick | MKC |
Alnasser | Abdullh | 5842664 | Proctor Gamble Co. | PG | Pepsico Inc. | PEP | Northern Oil and Gas, Inc | NOG | McCormick | MKC | McDonald’s | MCD |
Alosymi | Khalid | 6143822 | Pepsico Inc. | PEP | Northern Oil and Gas, Inc | NOG | Nike | NKE | McDonald’s | MCD | Southwest Airlines Co | LUV |
Alqubaisi | Ali | 6187515 | Northern Oil and Gas, Inc | NOG | Nike | NKE | McCormick | MKC | Southwest Airlines Co | LUV | Kroger | KR |
Alremeithi | Obaid | 6742379 | Nike | NKE | McCormick | MKC | McDonald’s | MCD | Kroger | KR | Kimberly-Clark | KMB |
Alsaif | Mashhour | 5190454 | McCormick | MKC | McDonald’s | MCD | Southwest Airlines Co | LUV | Kimberly-Clark | KMB | Hormel Foods | HRL |
Alsharif | Abdulrhman | 6127611 | McDonald’s | MCD | Southwest Airlines Co | LUV | Kroger | KR | Hormel Foods | HRL | Hasbro | HAS |
Alsobhi | Abdulmgid | 6123867 | Southwest Airlines Co | LUV | Kroger | KR | Kimberly-Clark | KMB | Hasbro | HAS | Alphabet Inc | GOOGL |
Alsuwaidi | Khalifa | 5078433 | Kroger | KR | Kimberly-Clark | KMB | Hormel Foods | HRL | Alphabet Inc | GOOGL | GameStop | GME |
Alyahya | Mohammed | 5395997 | Kimberly-Clark | KMB | Hormel Foods | HRL | Hasbro | HAS | GameStop | GME | General Mills | GIS |
Amaya | Lisa | 4718401 | Hormel Foods | HRL | Hasbro | HAS | Alphabet Inc | GOOGL | General Mills | GIS | Fossil | FOSL |
Arora | Hanika | 6191428 | Hasbro | HAS | Alphabet Inc | GOOGL | GameStop | GME | Fossil | FOSL | Ecolab | ECL |
Baabad | Bandar Khaled | 6217948 | Alphabet Inc | GOOGL | GameStop | GME | General Mills | GIS | Ecolab | ECL | Chevron Corp | CVX |
Bazarah | Ashraf | 6145655 | GameStop | GME | General Mills | GIS | Fossil | FOSL | Chevron Corp | CVX | Campbell Soup | CPB |
Bin Talib | Zaid | 6714325 | General Mills | GIS | Fossil | FOSL | Ecolab | ECL | Campbell Soup | CPB | Costco Wholesale | COST |
Cacho | Luis | 6437362 | Fossil | FOSL | Ecolab | ECL | Chevron Corp | CVX | Costco Wholesale | COST | Coca-Cola Bottling | COKE |
Ceniceros | Alec | 6181171 | Ecolab | ECL | Chevron Corp | CVX | Campbell Soup | CPB | Coca-Cola Bottling | COKE | Biglari Holdings | BH |
Chen | Le | 6143861 | Chevron Corp | CVX | Campbell Soup | CPB | Costco Wholesale | COST | Biglari Holdings | BH | Clorox | CLX |
Geng | Zongxuan | 6719915 | Campbell Soup | CPB | Costco Wholesale | COST | Coca-Cola Bottling | COKE | Clorox | CLX | Colgate Palmolive | CL |
Gonzalez | Lindsey | 5228674 | Costco Wholesale | COST | Coca-Cola Bottling | COKE | Biglari Holdings | BH | Colgate Palmolive | CL | Caterpillar | CAT |
Hernandez | Nazario | 4917129 | Coca-Cola Bottling | COKE | Biglari Holdings | BH | Clorox | CLX | Caterpillar | CAT | Ball Corporation | BLL |
Huang Liang | Steven | 4918377 | Biglari Holdings | BH | Clorox | CLX | Colgate Palmolive | CL | Ball Corporation | BLL | Best Buy Co. | BBY |
Jin | Minyu | 6717978 | Clorox | CLX | Colgate Palmolive | CL | Caterpillar | CAT | Best Buy Co. | BBY | Apple | AAPL |
Leno | Yanec | 5375717 | Exxon Mobil | XOM | Apple | AAPL | Best Buy Co. | BBY | Ball Corporation | BLL | Caterpillar | CAT |
Lobato | Abigail | 4916180 | Walmart | WMT | Best Buy Co. | BBY | Ball Corporation | BLL | Caterpillar | CAT | Colgate Palmolive | CL |
Lopez | Fabian | 5133644 | Verizon Communications | VZ | Ball Corporation | BLL | Caterpillar | CAT | Colgate Palmolive | CL | Clorox | CLX |
Nguyen | Maithi | 5909289 | Valero Energy Corporation | VLO | Caterpillar | CAT | Colgate Palmolive | CL | Clorox | CLX | Biglari Holdings | BH |
Ni | Jiahua | 6136529 | Tyson Foods | TSN | Colgate Palmolive | CL | Clorox | CLX | Biglari Holdings | BH | Coca-Cola Bottling | COKE |
Nunez | Maria | 6011690 | Target Corp | TGT | Clorox | CLX | Biglari Holdings | BH | Coca-Cola Bottling | COKE | Costco Wholesale | COST |
Shen | Minmin | 6137257 | AT&T Inc | T | Biglari Holdings | BH | Coca-Cola Bottling | COKE | Costco Wholesale | COST | Campbell Soup | CPB |
Wang | Junjie | 5422023 | Sony Corporation | SNE | Coca-Cola Bottling | COKE | Costco Wholesale | COST | Campbell Soup | CPB | Chevron Corp | CVX |
Wu | Junjie | 6137816 | J.M. Smucker | SJM | Costco Wholesale | COST | Campbell Soup | CPB | Chevron Corp | CVX | Ecolab | ECL |
Ye | Ziyi | 6720084 | Sprint Corp | S | Campbell Soup | CPB | Chevron Corp | CVX | Ecolab | ECL | Fossil | FOSL |
Zhu | Jiayu | 6138934 | Polo Ralph Lauren | RL | Chevron Corp | CVX | Ecolab | ECL | Fossil | FOSL | General Mills | GIS |
Zuo | Yifu | 5072791 | Proctor Gamble Co. | PG | Ecolab | ECL | Fossil | FOSL | General Mills | GIS | GameStop | GME |
Ahmed | Mohammed | 6131563 | Pepsico Inc. | PEP | Fossil | FOSL | General Mills | GIS | GameStop | GME | Alphabet Inc | GOOGL |
Al-Deyab | Ahmed | 6434034 | Northern Oil and Gas, Inc | NOG | General Mills | GIS | GameStop | GME | Alphabet Inc | GOOGL | Hasbro | HAS |
Al-Deyab | Jassem | 7101712 | Nike | NKE | GameStop | GME | Alphabet Inc | GOOGL | Hasbro | HAS | Hormel Foods | HRL |
Al-Hayki | Mohammed | 6434047 | McCormick | MKC | Alphabet Inc | GOOGL | Hasbro | HAS | Hormel Foods | HRL | Kimberly-Clark | KMB |
Alahmed | Abdullah | 5411532 | McDonald’s | MCD | Hasbro | HAS | Hormel Foods | HRL | Kimberly-Clark | KMB | Kroger | KR |
Alarifi | Ahmed | 6152532 | Southwest Airlines Co | LUV | Hormel Foods | HRL | Kimberly-Clark | KMB | Kroger | KR | Southwest Airlines Co | LUV |
Alarji | Mohammad | 6169991 | Kroger | KR | Kimberly-Clark | KMB | Kroger | KR | Southwest Airlines Co | LUV | McDonald’s | MCD |
Aldawood | Hamad | 6145681 | Kimberly-Clark | KMB | Kroger | KR | Southwest Airlines Co | LUV | McDonald’s | MCD | McCormick | MKC |
Aldossary | Abdullah | 6139935 | Hormel Foods | HRL | Southwest Airlines Co | LUV | McDonald’s | MCD | McCormick | MKC | Nike | NKE |
Alfalahi | Hamdan | 6826944 | Hasbro | HAS | McDonald’s | MCD | McCormick | MKC | Nike | NKE | Northern Oil and Gas, Inc | NOG |
Alharbi | Mohammed | 5807577 | Alphabet Inc | GOOGL | McCormick | MKC | Nike | NKE | Northern Oil and Gas, Inc | NOG | Pepsico Inc. | PEP |
Alhashmi | Mohamed | 5437207 | GameStop | GME | Nike | NKE | Northern Oil and Gas, Inc | NOG | Pepsico Inc. | PEP | Proctor Gamble Co. | PG |
Aljhanei | Naif | 6336898 | General Mills | GIS | Northern Oil and Gas, Inc | NOG | Pepsico Inc. | PEP | Proctor Gamble Co. | PG | Polo Ralph Lauren | RL |
Aljohani | Abeer Mohammed | 6220392 | Fossil | FOSL | Pepsico Inc. | PEP | Proctor Gamble Co. | PG | Polo Ralph Lauren | RL | Sprint Corp | S |
Almansoori | Bukheet | 6172227 | Ecolab | ECL | Proctor Gamble Co. | PG | Polo Ralph Lauren | RL | Sprint Corp | S | J.M. Smucker | SJM |
AlMansoori | Salem | 7105742 | Chevron Corp | CVX | Polo Ralph Lauren | RL | Sprint Corp | S | J.M. Smucker | SJM | Sony Corporation | SNE |
Almathami | Mohammed | 5107020 | Campbell Soup | CPB | Sprint Corp | S | J.M. Smucker | SJM | Sony Corporation | SNE | AT&T Inc | T |
Almazrouei | Ahmed | 7105755 | Costco Wholesale | COST | J.M. Smucker | SJM | Sony Corporation | SNE | AT&T Inc | T | Target Corp | TGT |
Almazrouei | Saeed | 7106392 | Coca-Cola Bottling | COKE | Sony Corporation | SNE | AT&T Inc | T | Target Corp | TGT | Tyson Foods | TSN |
Almazrouei | Saif | 6763179 | Biglari Holdings | BH | AT&T Inc | T | Target Corp | TGT | Tyson Foods | TSN | Valero Energy Corporation | VLO |
Almuhayya | Sultan | 5543079 | Clorox | CLX | Target Corp | TGT | Tyson Foods | TSN | Valero Energy Corporation | VLO | Verizon Communications | VZ |
Alotaibi | Nawaf | 6214256 | Colgate Palmolive | CL | Tyson Foods | TSN | Valero Energy Corporation | VLO | Verizon Communications | VZ | Walmart | WMT |
Alrasheed | Hamad | 5066538 | Caterpillar | CAT | Valero Energy Corporation | VLO | Verizon Communications | VZ | Walmart | WMT | Exxon Mobil | XOM |
Alremeithi | Obaid | 6742379 | Alphabet Inc | GOOGL | Pepsico Inc. | PEP | General Mills | GIS | Agilent Technologies, Inc. | A | Barnes Group Inc. | B |
AlSaeed | Nawaf | 6148424 | GameStop | GME | Valero Energy Corporation | VLO | Agilent Technologies, Inc. | A | General Mills | GIS | Aurora Cannabis Inc. | ACB |
Alsaif | Mashhour | 5190454 | General Mills | GIS | Alphabet Inc | GOOGL | Verizon Communications | VZ | GameStop | GME | Dominion Energy, Inc. | D |
Alsaif | Nasser | 6145330 | Fossil | FOSL | Hasbro | HAS | GameStop | GME | Alphabet Inc | GOOGL | FuelCell Energy, Inc | FCEL |
Alsalem | Mohammed | 4766605 | Ecolab | ECL | Hormel Foods | HRL | Alphabet Inc | GOOGL | Hasbro | HAS | Macy’s, Inc. | M |
AlSuwaidi | Ali | 4802820 | Chevron Corp | CVX | Kimberly-Clark | KMB | Hasbro | HAS | Hormel Foods | HRL | Genpact Limited | G |
Bin Talib | Zaid | 6714325 | Campbell Soup | CPB | Kroger | KR | Hormel Foods | HRL | Kimberly-Clark | KMB | Barnes Group Inc. | B |
Cai | Jiuwei | 6701559 | Costco Wholesale | COST | Southwest Airlines Co | LUV | Kimberly-Clark | KMB | Kroger | KR | Aurora Cannabis Inc. | ACB |
Cuahuizo | Eric | 6094253 | Coca-Cola Bottling | COKE | McDonald’s | MCD | Kroger | KR | Southwest Airlines Co | LUV | Dominion Energy, Inc. | D |
Eboka | Adim | 4344638 | Biglari Holdings | BH | McCormick | MKC | Southwest Airlines Co | LUV | McDonald’s | MCD | FuelCell Energy, Inc | FCEL |
Fang | Haorui | 5395581 | Clorox | CLX | Nike | NKE | McDonald’s | MCD | McCormick | MKC | Macy’s, Inc. | M |
Gutierrez | Giselle | 5191143 | Exxon Mobil | XOM | Northern Oil and Gas, Inc | NOG | McCormick | MKC | Nike | NKE | Genpact Limited | G |
Hamdallah | Omar | 6123854 | Walmart | WMT | Pepsico Inc. | PEP | Nike | NKE | Northern Oil and Gas, Inc | NOG | Barnes Group Inc. | B |
Helzaa | Saleh | 6187788 | Verizon Communications | VZ | Proctor Gamble Co. | PG | Northern Oil and Gas, Inc | NOG | Pepsico Inc. | PEP | Aurora Cannabis Inc. | ACB |
Huang | Jiangnan | 6729379 | Valero Energy Corporation | VLO | Polo Ralph Lauren | RL | Pepsico Inc. | PEP | Proctor Gamble Co. | PG | Dominion Energy, Inc. | D |
Liu | Jin | 5781447 | Tyson Foods | TSN | Sprint Corp | S | Proctor Gamble Co. | PG | Polo Ralph Lauren | RL | FuelCell Energy, Inc | FCEL |
Lu | Wenyu | 5400885 | Target Corp | TGT | J.M. Smucker | SJM | Polo Ralph Lauren | RL | Sprint Corp | S | Macy’s, Inc. | M |
Meng | Xingyu | 6726974 | AT&T Inc | T | Sony Corporation | SNE | Sprint Corp | S | J.M. Smucker | SJM | Genpact Limited | G |
Nabhan | Ahmad | 5457266 | Sony Corporation | SNE | AT&T Inc | T | J.M. Smucker | SJM | Sony Corporation | SNE | Barnes Group Inc. | B |
Rodriguez | Kimberly | 5195849 | J.M. Smucker | SJM | Target Corp | TGT | Sony Corporation | SNE | AT&T Inc | T | Aurora Cannabis Inc. | ACB |
Tahhan | Mohamad | 6720435 | Sprint Corp | S | Tyson Foods | TSN | AT&T Inc | T | Target Corp | TGT | Dominion Energy, Inc. | D |
Wang | Junjie | 5422023 | Polo Ralph Lauren | RL | Valero Energy Corporation | VLO | Target Corp | TGT | Tyson Foods | TSN | FuelCell Energy, Inc | FCEL |
Xu | Yingtai | 6717835 | Proctor Gamble Co. | PG | Agilent Technologies, Inc. | A | Tyson Foods | TSN | Valero Energy Corporation | VLO | Macy’s, Inc. | M |
Sheet2
Company Name | Ticker | ||||||||
Exxon Mobil | XOM | Apple | AAPL | Best Buy Co. | BBY | Ball Corporation | BLL | Caterpillar | CAT |
Walmart | WMT | Best Buy Co. | BBY | Ball Corporation | BLL | Caterpillar | CAT | Colgate Palmolive | CL |
Verizon Communications | VZ | Ball Corporation | BLL | Caterpillar | CAT | Colgate Palmolive | CL | Clorox | CLX |
Valero Energy Corporation | VLO | Caterpillar | CAT | Colgate Palmolive | CL | Clorox | CLX | Coach | COH |
Tyson Foods | TSN | Colgate Palmolive | CL | Clorox | CLX | Coach | COH | Coca-Cola Bottling | COKE |
Target Corp | TGT | Clorox | CLX | Coach | COH | Coca-Cola Bottling | COKE | Costco Wholesale | COST |
AT&T Inc | T | Coach | COH | Coca-Cola Bottling | COKE | Costco Wholesale | COST | Campbell Soup | CPB |
Sony Corporation | SNE | Coca-Cola Bottling | COKE | Costco Wholesale | COST | Campbell Soup | CPB | Chevron Corp | CVX |
J.M. Smucker | SJM | Costco Wholesale | COST | Campbell Soup | CPB | Chevron Corp | CVX | Ecolab | ECL |
Sprint Corp | S | Campbell Soup | CPB | Chevron Corp | CVX | Ecolab | ECL | Fossil | FOSL |
Polo Ralph Lauren | RL | Chevron Corp | CVX | Ecolab | ECL | Fossil | FOSL | General Mills | GIS |
Proctor Gamble Co. | PG | Ecolab | ECL | Fossil | FOSL | General Mills | GIS | GameStop | GME |
Pepsico Inc. | PEP | Fossil | FOSL | General Mills | GIS | GameStop | GME | Alphabet Inc | GOOGL |
Northern Oil and Gas, Inc | NOG | General Mills | GIS | GameStop | GME | Alphabet Inc | GOOGL | Hasbro | HAS |
Nike | NKE | GameStop | GME | Alphabet Inc | GOOGL | Hasbro | HAS | Hormel Foods | HRL |
McCormick | MKC | Alphabet Inc | GOOGL | Hasbro | HAS | Hormel Foods | HRL | Kimberly-Clark | KMB |
McDonald’s | MCD | Hasbro | HAS | Hormel Foods | HRL | Kimberly-Clark | KMB | Kroger | KR |
Southwest Airlines Co | LUV | Hormel Foods | HRL | Kimberly-Clark | KMB | Kroger | KR | Southwest Airlines Co | LUV |
Kroger | KR | Kimberly-Clark | KMB | Kroger | KR | Southwest Airlines Co | LUV | McDonald’s | MCD |
Kimberly-Clark | KMB | Kroger | KR | Southwest Airlines Co | LUV | McDonald’s | MCD | McCormick | MKC |
Hormel Foods | HRL | Southwest Airlines Co | LUV | McDonald’s | MCD | McCormick | MKC | Nike | NKE |
Hasbro | HAS | McDonald’s | MCD | McCormick | MKC | Nike | NKE | Northern Oil and Gas, Inc | NOG |
Alphabet Inc | GOOGL | McCormick | MKC | Nike | NKE | Northern Oil and Gas, Inc | NOG | Pepsico Inc. | PEP |
GameStop | GME | Nike | NKE | Northern Oil and Gas, Inc | NOG | Pepsico Inc. | PEP | Proctor Gamble Co. | PG |
General Mills | GIS | Northern Oil and Gas, Inc | NOG | Pepsico Inc. | PEP | Proctor Gamble Co. | PG | Polo Ralph Lauren | RL |
Fossil | FOSL | Pepsico Inc. | PEP | Proctor Gamble Co. | PG | Polo Ralph Lauren | RL | Sprint Corp | S |
Ecolab | ECL | Proctor Gamble Co. | PG | Polo Ralph Lauren | RL | Sprint Corp | S | J.M. Smucker | SJM |
Chevron Corp | CVX | Polo Ralph Lauren | RL | Sprint Corp | S | J.M. Smucker | SJM | Sony Corporation | SNE |
Campbell Soup | CPB | Sprint Corp | S | J.M. Smucker | SJM | Sony Corporation | SNE | AT&T Inc | T |
Costco Wholesale | COST | J.M. Smucker | SJM | Sony Corporation | SNE | AT&T Inc | T | Target Corp | TGT |
Coca-Cola Bottling | COKE | Sony Corporation | SNE | AT&T Inc | T | Target Corp | TGT | Tyson Foods | TSN |
Coach | COH | AT&T Inc | T | Target Corp | TGT | Tyson Foods | TSN | Valero Energy Corporation | VLO |
Clorox | CLX | Target Corp | TGT | Tyson Foods | TSN | Valero Energy Corporation | VLO | Verizon Communications | VZ |
Colgate Palmolive | CL | Tyson Foods | TSN | Valero Energy Corporation | VLO | Verizon Communications | VZ | Walmart | WMT |
Caterpillar | CAT | Valero Energy Corporation | VLO | Verizon Communications | VZ | Walmart | WMT | Exxon Mobil | XOM |