Finance

Finance
Order Description
According to the excel, you can respond my 7 questions. You can also find answer from websites.

Portfolio HW
1. How does your portfolio compare to your individual holdings? Was diversification helpful? Successful?
2. What does your beta imply? What does your alpha imply?
3. Knowing what you know, i.e. returns, risks, how would you change your allocation to improve your portfolio’s risk and return? Calculate summary and portfolio statistics with your changes incorporated.
4. Did you change increase returns? Reduce risk? Are you comfortable with the results?
5. If you expected the economy to slow what sectors would you emphasize and why? If you expected a robust economy what sectors would you emphasize and why?
6. Does the correlation matrix help form any option on how weight your stocks or how you might want to change weight to change wright going forward?
7. Download prices for the period Dec 1999 to December 2002. Calculate portfolio statistics. Apply the weights from the changes you recommended from 2 above. Are these the results you were expecting? Examine the correlation matrix. Does the matrix provide guidance as to weightings?
Date Run Tot SPX
Jan-95 1.00763777 1.024277658
Feb-95 1.04682778 1.0612
Mar-95 1.086951326 1.0902
Apr-95 1.117232233 1.1207
May-95 1.15746044 1.1614
Jun-95 1.188842959 1.1861
Jul-95 1.268982356 1.2238
Aug-95 1.271685975 1.2234
Sep-95 1.337289022 1.2725
Oct-95 1.354011192 1.2261
Nov-95 1.391672032 1.3181
Dec-95 1.458165691 1.3411
Jan-96 1.463980707 1.3848
Feb-96 1.507247662 1.3945
Mar-96 1.525272642 1.4055
Apr-96 1.570822416 1.4244
May-96 1.634540448 1.4569
Jun-96 1.683548959 4.4602
Jul-96 1.615582499 1.3934
Aug-96 1.658671231 1.4196
Sep-96 1.730748069 1.4966
Oct-96 1.775337364 1.5356
Nov-96 1.93244765 1.6483
Dec-96 1.909283523 1.6129
Jan-97 1.996282189 1.7118
Feb-97 2.05748214 1.7219
Mar-97 1.992716023 1.6485
Apr-97 2.074687935 1.7448
May-97 2.168777809 1.847
Jun-97 2.305832883 1.9273
Jul-97 2.451716369 2.0779
Aug-97 2.242198651 1.9585
Sep-97 2.44617738 2.0626
Oct-97 2.325397718 1.9915
Nov-97 2.343302278 2.0803
Dec-97 2.478913035 2.113
Jan-98 2.462446913 2.1344
Feb-98 2.562666016 2.2848
Mar-98 2.719605797 2.3989
Apr-98 2.776186582 2.4207
May-98 2.653392034 2.3751
Jun-98 2.701005939 2.4688
Jul-98 2.564791071 2.4401
Aug-98 2.273178397 2.0844
Sep-98 2.391090759 2.2144
Oct-98 2.575105755 2.3922
Nov-98 2.767738054 2.5337
Dec-98 2.689589943 2.6765
Jan-99 2.748102606 2.7862
Feb-99 2.666483929 2.6963
Mar-99 2.888083541 2.8009
Apr-99 3.115506828 2.9072
May-99 3.073260186 2.8346
Jun-99 3.1533651 2.9889
Jul-99 3.075256118 2.8931
Aug-99 2.980184491 2.875
Sep-99 2.807918432 2.7929
Oct-99 2.986479089 2.9676
Nov-99 3.031161261 3.0245
Dec-99 2.877723618 3.1991

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