Excel exercise Choose 5 asset and calculate expected rates of return and standard deviation of returns for 5 assets.

Finance by Geoffrey

Excel exercise

Choose 5 asset and calculate expected rates of return and standard deviation of returns for 5 assets.

Calculate the set of “mean/variance” efficient portfolios for the 5 assets.

Calculate and plot the portfolios on a chart.

Illustrate that the basic “Markowitz optimization” model does not always work so well.