• Financial Markets

  • Individual task
  •  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.
  •  Formal Written Report saved and uploaded to Moodle in PDF format. Formalities:
  •  Word count: 1000/1500 words
  •  Cover, Table of Contents, References and Appendix are excluded of the total word count.
  •  Font: Arial 12,5 pts.
  •  Text alignment: Justified.
  •  The in-text References and the Bibliography have to be in Harvard’s citation style.
Financial Markets