Assignment Paper

FIN551: Excel Assignment (5%) – Due date week 9.

Sara is looking for an investment that can give her 20% return. She preferred diversified portfolio with mix of international and local stocks plus risk free investment. Sara is 35 years old and a single parent with two children. The eldest is 17 years old and the youngest is 12 years old. She planned to use the investment return to pay for her house deposit. Currently she is renting an apartment at Olaya Street, Riyadh. Her yearly income as an accountant is SR360,000. As an investment manager at Saudi Equity, you are required to prepare the following calculations by using excel. You are required to
1. Chose a mix of 2 local company share, 1 any oversea company share and T-Bill. The data should be adjusted closing price or if unavailable you can use closing price for monthly average for a period of one year (you will have 12 average closing price.
2. Calculate the HPR, Expected Return, Standard Deviation for your portfolio, covariance and correlation.
3. Use solver to calculate your Minimum Variance (MVC) with efficient frontier graph
4. Use solver to calculate Optimal portfolio weight.
5. Write short report about your finding and analysis with the background of the company chosen.
6. This is an individual assignment.
7. Submit the written report and present your finding in class.
How to add solver : https://www.excel-easy.com/data-analysis/solver.html
https://www.youtube.com/watch?v=bpnOP0oFSpQ (calculation of R, risk, covariance and correlation)
https://www.youtube.com/watch?v=d-2bAN2chIs (calculation MVC)