Welcome to Part 6 of our comprehensive Excel tutorial series on stock portfolio analysis! in urdu<br />FIN 4300<br />Project Objectives<br />This project provides an introduction to investments in financial assets. It is also an exercise for students to understand their attitudes toward risk and the risk-return relationship presented in financial markets. It will offer an opportunity to examine risks, their measurements, and how they are embedded in asset prices. It would deliver a better intuition about asset pricing models introduced in the course.<br />Due date: <br />Instructions<br />Download datasets<br />• Pick 5-8 stocks of your choice from the SP 500 index.<br />• Download data from https://finance.yahoo.com , it can be of daily or monthly<br />frequency.<br />• Download data 10-year Treasury bond yield data from<br />https://fred.stlouisfed.org/series/DGS10 to get return estimates of risk-free<br />investments from 2012 to 2022.<br />• Download data from 2010 to 2022:<br />1. Use data from 2012 to 2022 to gain insights into assets' historical<br />distributions (it is your choice if you want to use one year or more, explain<br />it)<br />2. Use data from 2021 to 2022 to perform out-of-sample performance<br />Manipulate the datasets and examine risk and returns relationship<br />• Reorganize the historical data into pivot tables to have the ability to assess the risk<br />embedded in each stock and its expected return:<br />1. Obtain expected returns<br />2. Obtain The standard deviation of returns to assess stocks’ total risk<br />3. Decompose their total risk into unsystematic and systematic risk<br />4. Obtain the Sharpe ratio to assess the risk-reward relationship of each asset<br />5. Assess down tail risk by calculating the value at risk and the Expected<br />shortfall of each stock<br />6. Create a dashboard to display information regarding the distribution<br />FIN 4300<br />Construct risky portfolio<br />Notes: assume that there is no shorting, no leverage, and you invest 100% of your money.<br />• Based on the risk profile, construct the optimal risky portfolio based on the stocks<br />chosen<br />• Construct the equal-weighted portfolio<br />• Construct the minimum variance portfolio<br />• Provide and display graphically the efficient frontier<br />Construct complete portfolio<br />• After obtaining your risky optimized portfolio<br />• Create your complete portfolio and use the Capital asset allocation line following<br />your risk appreciation.<br />In this video, we delve into advanced statistical metrics, including mean, variance, standard deviation, beta, variance, skewness, and kurtosis. Learn how to calculate and interpret these crucial measures to make informed investment decisions.<br /><br /> Excel Dashboard Included!<br />We've also crafted a powerful Excel dashboard to visualize your stock portfolio's performance, providing a holistic view of risk and return.<br /><br />
