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Financial Markets

INSTRUCTIONS:

·         Students should read the Harvard Business School case study entitled 'Investments: Delineating an Efficient Portfolio' and answer the following questions. Students should note that the risk of the portfolio should not be more than 10% per year. Students should use the dataset in the Stock Spreadsheet for their calculations. ·         Key contextual elements should include risk diversification, portfolio theory, efficient frontier, Sharpe ratio, correlation analysis, risk and return. ·         General instructions: o   Make a two-asset portfolio and examine how risk is diversified. o   Make an efficient multiple-asset portfolio. o   Make an efficient multiple-asset portfolio and analyze the effect of adding a risk-free asset to a portfolio containing risky assets. ·         Title page, written body, along with a bibliography of any written references, images, or diagrams used (if applicable). NOTE: Formal Written Reports must include a Title Page, Table of Contents, and Appendix if needed.
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