FIN 450 Superior University Finance Worksheet

using Excel Draw the efficient frontier using real data

step 1 collects historical data for some risky assets (stocks) from the US market for at least 4 assets for at least 2 years

step 2 calculates daily returns without dividends

step 3 calculates the expected return (average) and risk (S.D) for each asset compute Corr

step 4 create portfolios combining the 4 stocks by changing the weights at least create 20 portfolios

step 5 plot all the portfolios on the efficient frontier and apply the principle of dominance