Posted: February 3rd, 2015

Efficient Frontiers

Paper, Order, or Assignment Requirements

Please kindly complete work as the instruction below:

Question 3 (1,000 Words)
Efficient Frontiers
Your client wants you to produce a set of minimum variance and efficient portfolios with and without short selling restriction; using any 20 stocks of your choice (from the markets listed below).
Instructions:
1) Collect the closing monthly share prices for 61 months for 20 companies from your group choice (e.g. Datastream).
2) Derive the minimum variance frontier for various levels of expected returns, without short-selling of risky assets
3) Derive the minimum variance frontier for various levels of expected returns with restricted short-selling (apply whatever restriction you consider appropriate) of risky assets allowed.
4) Plot those two minimum variance frontiers.
5) Produce a client report explaining your workings and findings.
6) Critically discuss the problems associated with short-selling.
[40 marks]

My group choice is Group I which is “NIKKEI 225” for question 3.

You will require to complete the work in both excel file for calculation part and also essay. Please kindly deliver the work within 3 hours.

I will upload the instructions however you will need to complete only question 3. Besides, I will example of calculation in excel file however you will need to use the data from what question 3 require (NIKKEI 225) for calculation.