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.
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.