Microsoft Word - finc_3330_final_project.docx FINC 3330: Final Assignment Due: May 22, 2020, 11:59 P.M Note: Use Blackboard to submit this project (as we have been doing). DO NOT send me it via email....

Sheet1
            Coca Cola    Pepsi
        Date    KO Close    PEP Close    KO Returns    PEP Returns    Portfolio Return        KO    PEP    Mean    Variance    Standard Deviation
        12/2/19    51.971497    131.113968                    0%    100%    0.06%    0.00053223    2.31%
        12/3/19    52.01984    130.708694    0.09%    -0.31%    -0.11%        2%    98%    0.06%    0.0005113429    2.26%
        12/4/19    52.493633    132.484177    0.91%    1.36%    1.13%        4%    96%    0.06%    0.00049126    2.22%
        12/5/19    52.396938    132.479294    -0.18%    -0.00%    -0.09%        6%    94%    0.06%    0.0004719814    2.17%
        12/6/19    52.619328    133.470413    0.42%    0.75%    0.59%        8%    92%    0.06%    0.0004535069    2.13%
        12/9/19    52.280907    133.276077    -0.64%    -0.15%    -0.39%        10%    90%    0.06%    0.0004358366    2.09%
        12/10/19    51.990837    132.411285    -0.55%    -0.65%    -0.60%        12%    88%    0.06%    0.0004189706    2.05%
        12/11/19    52.164883    133.217789    0.33%    0.61%    0.47%        14%    86%    0.06%    0.0004029087    2.01%
        12/12/19    52.348595    133.295502    0.35%    0.06%    0.21%        16%    84%    0.06%    0.0003876511    1.97%
        12/13/19    52.619328    134.033997    0.52%    0.55%    0.54%        18%    82%    0.06%    0.0003731977    1.93%
        12/16/19    52.619328    133.178894    0.00%    -0.64%    -0.32%        20%    80%    0.06%    0.0003595485    1.90%
        12/17/19    52.619328    132.314102    0.00%    -0.65%    -0.32%        22%    78%    0.05%    0.0003467035    1.86%
        12/18/19    52.126205    132.119766    -0.94%    -0.15%    -0.54%        24%    76%    0.05%    0.0003346627    1.83%
        12/19/19    52.522636    132.605606    0.76%    0.37%    0.56%        26%    74%    0.05%    0.0003234261    1.80%
        12/20/19    53.151134    134.014557    1.20%    1.06%    1.13%        28%    72%    0.05%    0.0003129937    1.77%
        12/23/19    53.093117    133.15947    -0.11%    -0.64%    -0.37%        30%    70%    0.05%    0.0003033655    1.74%
        12/24/19    52.899734    133.013718    -0.36%    -0.11%    -0.24%        32%    68%    0.05%    0.0002945415    1.72%
        12/26/19    53.199478    132.819397    0.57%    -0.15%    0.21%        34%    66%    0.05%    0.0002865218    1.69%
        12/27/19    53.518559    133.645325    0.60%    0.62%    0.61%        36%    64%    0.05%    0.0002793062    1.67%
        12/30/19    53.441204    132.935989    -0.14%    -0.53%    -0.34%        38%    62%    0.05%    0.0002728949    1.65%
        12/31/19    53.518559    132.799957    0.14%    -0.10%    0.02%        40%    60%    0.05%    0.0002672878    1.63%    Results
        1/2/20    53.170471    131.974045    -0.65%    -0.62%    -0.64%        42%    58%    0.05%    0.0002624848    1.62%
        1/3/20    52.880394    131.789413    -0.55%    -0.14%    -0.34%        44%    56%    0.05%    0.0002584861    1.61%    As per the minimum variance portfolio the optimal weight that minimizes the portfolio standard deviation (risk) and maximizes the return is at 0.06% where the standard deviation is 2.17%. At the same point of standard deviation (risk) of 2.17%, the minimum return that can be achieved is 0.03%. Hence, the minimum variance of the portfolio is achieved at SD 2.17% with a return of 0.06%. In this case, we can also observe that the maximum return of 0.06% can be achieved only when we invest 6% of our investment in Coca Cola (KO) and 94% in Pepsi (PEP)....