Project: Portfolio Construction
What factors explain key actors decision to declare Iran’s nuclear program as a national security threat.
August 4, 2017Maritime law
August 4, 2017Project: Portfolio Construction
1) Visit the following www page:
http://www.investorcraft.com/PortfolioTools/EfficientFrontier.aspx
2) Select 10 securities (stocks or ETFs)
3) For investment horizons of 1,3, 5, 7 and 10 years, use the software to estimate the allocation weights in:
a) The optimum risky portfolio (ORP)
b) The minimum variance portfolio (MV)
4) How sensitive are the allocation weights to the time horizon. What does that suggests?
5) Based on the estimation results and what you have learned in this class, what do you conclude about the efficient portfolio construction approach? What are its strengths and limitations?
Write a short report answering the above questions. Start by explaining the efficient portfolio approach to a non-initiated person.
Attach all estimate printouts from the software
