Description

Use Excel 1- Select 2 stocks from form Tadawl That are nigativlly correlated 2- collect hoistirical prices of both stocks for the past 40 months 3- compute returns of both stocks ( ignoring dividends ) 4- compute expected returns and standard deviation of each stock 5- compute the correlation between both stocks 6- create portfolio that includes both stock and change the wight of each stock to get at least 30 portfolio 7- if we change the wight we will get different Er and S/D for each portfolio 8- ( on separate paper)draw graph including Er on Y axix and and standard diviation on X axix plot all 30 portfolios on graph 9- apply principal of dominance to pick only efficient portfolios 10- join all efficient portfolios .