Econ 325 (004)Winter Session, Term 1, 2019M. VaneyLab 1 - Portfolio Frontiers and CAPMThe ?le 325-lab1.csv contains data on the monthly returns on a number of Canadian stocksover a 5 year period from September 30 2010 through September 30 2015. Holding periodreturns ri =income +PiPi1are provided for the following 10 stocks traded on the Toronto StockExchange (TSX)asset ?rm Tickerr1 Air Canada ACr2 Bank of Montreal BMOr3 Sherritt International Corp Sr4 Canfor Corporation CFPr5 Canadian Natural Resources Limited CNQr6 Canadian Tire Corporation Limited CTCr7 Loblaw Companies Ltd. Lr8 Potash Corporation of Saskatchewan POTr9 Sun Life Financial Inc. SLFr10 TC Pipelines LP TRPPortfolio Returns and VariancesThe Expected or mean return of a portfolio of N risky assets will beis the fraction of wealth held in risky asset i; Pni=1 ?i = 1.For a portfolio consisting of 2 risky assets the variance of returns will be:For a portfolio consisting of 3 riskEcon 325代做撤蟆、代寫data奕塑、代做Java程序設計、cy assets the variance of returns will be:A Portfolio Frontier will trace out the mean and standard deviation of the set of portfoliosthat minimize variance for a given level of expected return.When there are two risky assets, both risky assets will lie on the portfolio frontier. Theportfolio frontier can therefore be constructed by assigning a portfolio weight ? to one ofthe assets and the weight (1) to the other asset. If 0 1 then no short sales arepermitted and non-negative quantities of each asset must be held in the portfolio.1Portfolio FrontiersPrepare the following tables and ?gures:1. A table that shows the average return and standard deviation for each of the 10 stocks.2. A table that shows the correlation between all pairs of ?rms.3. A scatter plot that shows the average returns (y axis) and standard deviations (x axis)of each of the 10 stocks.4. Portfolio frontiers for the following three pairs of stocks:(i) AC and SLF(ii) AC and L(iii) CTC and SLF2轉(zhuǎn)自：http://www.daixie0.com/contents/9/4348.html