Financial modeling and forecast project 2
the instructions and questions are in the word document
3 years ago
45
Project2Fall2023StockReturnProbabilityDistribution.xlsm
Project2Fall2023DataforTwoStocks.xlsm
Project2Fall2023PortfolioWeightsData.xlsm
Project2Fall2023EfficientPortfoliosData.xlsm
Project2Fall2023InstructionsDueDate.docx
Project2Fall2023AssetAllocationData.xlsm
Project2Fall2023CorrelationMatrixData.xlsm
- Project2Fall2023EXCELWorkbookwithVBAFunctions.xlsm
- Project2Fall2023Questions.docx
- Project2Fall2023StockData.xlsm
Project2Fall2023StockReturnProbabilityDistribution.xlsm
Sheet1
| Stock Return Probability Distribution | |
| Return | Probability |
| 0.05 | 0.38 |
| 0.08 | 0.27 |
| 0.20 | 0.21 |
| 0.25 | 0.14 |
Project2Fall2023DataforTwoStocks.xlsm
Sheet1
| Data for Two Stocks | ||
| A | B | |
| Expected return | 14.00% | 9.00% |
| Variance of return | 0.77 | 0.86 |
| Standard deviation of return | 87.75% | 92.74% |
| Correlation | 0.65 | |
| Proportion of A | 0.4 |
Project2Fall2023PortfolioWeightsData.xlsm
Sheet1
| PORTFOLIO WEIGHTS DATA | ||
| Assets | Portfolio A Weights | Portfolio B Weights |
| Stock 1 | 21.00% | 15.00% |
| Stock 2 | 15.00% | 21.00% |
| Stock 3 | 28.00% | 16.00% |
| Stock 4 | 14.00% | 20.00% |
| Stock 5 | 10.00% | 17.00% |
| Stock 6 | 12.00% | 11.00% |
Project2Fall2023EfficientPortfoliosData.xlsm
Sheet1
| Efficient Portfolios Data | |||||||
| Variance-Covariance Matrix | |||||||
| Stock A | Stock B | Stock C | Stock D | Stock E | Means | ||
| Stock A | 0.0016 | -0.0005 | 0.0001 | -0.0005 | -0.0012 | 4.00% | |
| Stock B | -0.0005 | 0.0361 | 0.0032 | 0.0033 | -0.0011 | 6.00% | |
| Stock C | 0.0001 | 0.0032 | 0.0081 | 0.0011 | -0.0014 | 7.00% | |
| Stock D | -0.0005 | 0.0033 | 0.0011 | 0.0064 | 0.0011 | 2.00% | |
| Stock E | -0.0012 | -0.0011 | -0.0014 | 0.0011 | 0.0100 | 8.00% | |
Project2Fall2023InstructionsDueDate.docx
Project 2 Instructions and Due Date
(FIN 4453 – Gary Smith)
1) Project 2 materials may be found in the Module: Project 2 Fall 2023 on the Canvas course site.
2) There are 10 questions on Project 2. Some of the questions have multiple parts. Be sure to answer each part of each question. Clearly identify your answer to each part of each question.
3) Due Date: By 5:00 pm on Monday, November 20, 2023.
4) You are expected to work on this project by yourself. You may consult with me if you have any questions.
5) Please provide me a Printed (no electronic copies will be accepted) copy of each problem in Project 2.
6) The Printed copy should be formatted and assembled in the following manner:
a. Staple all problems together so they are not lost or separated
b. Print your name, course number (FIN 4453), and section number at the top of each page
c. Print Row and Column Headings for each problem as demonstrated in class
d. Print out formulas used in each problem as demonstrated in class
e. Clearly identify your answer to each part of each question.
f. If you use Goal Seek to determine an answer, please identify the
i. Set Cell
ii. To Value
iii. By Changing Cell
g. If you use Solver to determine an answer, please identify the
i. Set Objective (Cell)
ii. To Value
iii. By Changing Variables Cell
iv. Subject to (if used)
7) Please format and present the problem solutions is such a manner that another individual would be able to look at your solutions and follow your logic in solving the problem. If you were not available, then another individual should be able to solve a similar problem by following the logic of your solution.
8) In order to achieve the above, you may need to document and comment on your solution logic.
9) The project will be graded on the basis of correct solutions, presentation and formatting of solutions, and the explanation of solutions. You should view this as a professional report you would submit to your supervisor in a professional setting. Be sure to use proper grammar in your explanations.
Project2Fall2023AssetAllocationData.xlsm
Sheet1
| Asset Allocation Data | |||||||||||||||
| Variance-covariance matrix | Means | Asset | Port. 1 Investment | Port. 2 Investment | |||||||||||
| Stock A | Stock B | Stock C | Stock D | Stock E | |||||||||||
| Stock A | 0.0016 | 0.0004 | 0.0022 | 0.0006 | 0.0017 | 1.75% | Stock A | $900 | $700 | ||||||
| Stock B | 0.0004 | 0.0361 | 0.0028 | 0.0101 | 0.0029 | 10.00% | Stock B | $500 | $1,200 | ||||||
| Stock C | 0.0022 | 0.0028 | 0.0225 | 0.0082 | 0.0064 | 2.50% | Stock C | $700 | $600 | ||||||
| Stock D | 0.0006 | 0.0101 | 0.0082 | 0.0081 | 0.0039 | 2.75% | Stock D | $800 | $900 | ||||||
| Stock E | 0.0017 | 0.0029 | 0.0064 | 0.0039 | 0.0064 | 3.00% | Stock E | $600 | $800 | ||||||
Project2Fall2023CorrelationMatrixData.xlsm
Sheet1
| Monthly Return Data for Eight Stocks | ||||||||
| Month | Stock A | Stock B | Stock C | Stock D | Stock E | Stock F | Stock G | Stock H |
| 1 | 2.86% | -4.34% | -0.72% | 0.00% | 5.11% | -6.24% | 2.40% | -1.44% |
| 2 | -0.86% | -15.88% | 14.50% | 6.32% | 1.08% | -1.44% | -6.70% | -13.12% |
| 3 | 0.41% | 35.06% | 1.90% | 6.76% | 3.74% | -13.12% | 1.30% | 2.76% |
| 4 | -2.85% | 21.97% | 3.73% | 12.15% | 2.06% | 2.76% | 2.60% | -6.39% |
| 5 | -3.05% | 11.46% | -5.39% | 4.74% | -4.55% | -6.39% | -2.50% | 17.24% |
| 6 | 4.85% | 29.49% | 22.15% | 25.86% | 17.46% | 17.24% | 9.80% | -2.66% |
| 7 | 1.26% | 14.75% | -2.59% | 4.11% | -0.45% | -2.66% | -0.70% | 18.13% |
| 8 | 5.82% | -6.92% | -5.32% | -12.50% | -1.81% | 18.13% | -0.30% | -15.88% |
| 9 | -7.20% | 0.00% | -24.99% | -7.52% | -11.98% | -5.49% | -9.00% | 35.06% |
| 10 | -0.86% | -25.57% | -0.38% | 2.44% | -2.09% | -0.53% | -4.90% | 21.97% |
| 11 | 5.10% | 21.51% | 0.75% | 1.19% | 12.84% | 3.01% | -0.40% | 11.46% |
| 12 | 1.69% | 23.49% | 11.94% | 13.33% | -2.37% | 11.90% | 6.40% | 29.49% |
| 13 | -0.83% | 40.97% | 2.66% | 4.16% | 9.71% | 0.00% | 2.70% | 14.75% |
| 14 | 0.86% | 22.31% | 18.83% | 30.40% | -1.77% | 11.30% | 4.40% | 11.55% |
| 15 | 4.66% | 11.58% | 4.37% | 5.73% | 5.86% | 17.59% | 7.20% | 7.14% |
| 16 | 4.45% | 12.89% | -2.10% | 2.29% | 6.81% | 1.90% | 2.40% | -2.67% |