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requirementsandrubric.docxAssignment 2 + 1 discussion question
Assignment 2 is a complete written report of your portfolio formation in a Word document. Your historical data and relevant derived values in tables can be pasted from your previous calculations in the Excel spreadsheet. Please provide explanations of all calculations and the justifications in Word format. Make sure to also paste all underlying Excel formulae that you used for calculations in the Word document.
1. Once again, provide the data that you presented in answering Part 2 of Assignment 1
2. Calculate the mean, variance, and the standard deviation of each security’s annual rate of return.
3. Calculate the correlation coefficient between every possible pair of securities’ annual rates of return.
4. Choose percentages of your initial investment that you want to allocate amongst the five (5) securities (weights in the portfolio).
1. Create embedded formulae which generate statistical properties of the portfolio upon insertion of the weights.
2. Observe the mean, the standard deviation, and the CV of the annual rate of return of the portfolio.
5. Find the combination of the weights that minimizes CV of the portfolio.
1. How does the CV of the optimal portfolio compare with the CVs of its constituents?
2. What is the expected rate of return and standard deviation of the rate of return of the portfolio?
6. Choose different values within the range of the standard deviation of the portfolio, and for each chosen value, locate the corresponding point on the efficient frontier by finding the weights that maximize the expected rate of return of the portfolio.
1. Subsequently, construct the efficient frontier of your portfolio.
7. Assume that you initially invested $1,000,000 in the portfolio and that the distribution of the annual rate of return of the portfolio is normal.
1. What is the distribution of the return of the portfolio 20 years after its formation?
2. Provide the graph of the distribution of the return of the portfolio.
Remember to Provide detailed and precise explanations and definitions, APA 7th format!
Explain everything in your own words, references cited needs to be peer-review articles.
Turnitin report’s similarity must be less than 20%!!!
Rubric:
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Criteria |
Performance Indicators (Observation descriptors indicating extent to which criterion is met.) |
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Exemplary 10・9 |
Proficient 8・7・6 |
Needs Improvement 5・4 |
Unsatisfactory 3・2・1 |
No Submission |
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Depth
30% of overall grade |
Content indicates synthesis of ideas, in depth analysis, and evidence of original thought and support for the topic.
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Content indicates original thinking and develops ideas with sufficient and firm evidence.
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Content indicates thinking and reasoning applied with original thought on a few ideas.
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Content indicates some thinking and reasoning but most ideas are unoriginal or underdeveloped.
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0 points |
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Resources
25% of overall grade |
All evidence supports arguments and is relevant to the topic. The student uses the required number and type of resources identified in the syllabus to support his/her argument.
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Most evidence supports arguments and is relevant to the topic. The student uses 75% of the required number and type of resources identified in the syllabus to support his/her argument.
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Some evidence supports arguments and is relevant to the topic. The student uses 50% of the required number of sources.
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Limited evidence to support arguments, with few sources relevant to the topic. The student uses less than 50% of the required number of sources.
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0 points |
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Organization
15% of overall grade |
Paper has a high degree of attention to logic and reasoning of points. Paper clearly leads the reader to the conclusion and stirs thought regarding the topic.
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Paper is coherent and logically organized with transitions used between ideas and paragraphs to create coherence. Overall unity of ideas is present.
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Paper is somewhat structured and logically organized. Some points remain misplaced and stray from the topic. Transitions evident but not used throughout. |
Paper is limited in logical organization with major errors.
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0 points |
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Mechanics
15% of overall grade |
Few errors in spelling, punctuation, capitalization, sentence structure, and grammar.
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Occasional errors in spelling, punctuation, capitalization, sentence structure and grammar, but meaning is not obscured.
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Frequent errors of spelling, punctuation, capitalization, sentence structure and grammar; meaning confused or obscured.
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Dominated by errors in spelling, punctuation, capitalization, sentence structure and grammar; meaning at times unidentifiable.
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0 points |
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Formatting
15% of overall grade |
Paper meets all formatting guidelines and assignment requirements, including page-length and APA formatting requirements. Paper is correctly assembled with a professional look.
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The paper follows most formatting guidelines, including page-length and APA formatting requirements.Paper is correctly assembled.
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Paper generally follows formatting guidelines and assignment requirements, including page-length and APA formatting requirements. Paper has some assembly errors
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Paper does not follow formatting guidelines and assignment requirements, including page -length and APA format requirements. Paper has major assembly errors
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0 points |
Discussion post: write 2-3 paragraph(300-400words) to answer the following question, cite 1-2 references:
ABC Company has hired you to explain the criteria for assessing the performance of a security, specifically expected rate of return, standard deviation of rate of return, and coefficient of variation (CV). They also want you to show how, by forming a portfolio, an instrument can be generated that has properties better than each of its constituents in terms of the standard deviation of rate of return and CV. How would you explain and show this information to ABC Company?
