CLA 2 Comprehensive Learning Assessment 2 – CLO 1, CLO 3, CLO 4, CLO 5, CLO 6,CLO 7This is a complete written report of your portfolio formation in a Word file. Your historical dataand relevant derived values in tables can be pasted from your previous calculations in theExcel file. Please provide explanations of all calculations and the justifications in the Wordformat. Also, make sure to paste all underlying Excel formulae that you used for calculationsin the Word file.1. Provide once again the data that you presented in answering part 2 of professionalassignment 2. (I have attached a file for reference)2. Calculate the mean, variance, and the standard deviation of each security’s annual rateof return.3. Calculate the correlation coefficient between every possible pair of securities’ annualrates of return.4. Choose percentages of your initial investment that you want to allocate amongst thefive (5) securities (weights in the portfolio). Create embedded formulae which generatestatistical properties of the portfolio upon insertion of the weights. Observe the mean,the standard deviation, and the CV of the annual rate of return of the portfolio.5. Find the combination of the weights that minimizes CV of the portfolio. How the CV ofthe optimal portfolio compares with the CV’s of its constituents. What is the expectedrate of return and standard deviation of the rate of return of the portfolio?6. Choose different values within the range of the standard deviation of the portfolio, andfor each chosen value locate the corresponding point on the efficient frontier by findingthe weights that maximize the expected rate of return of the portfolio. Subsequently,construct the efficient frontier of your portfolio.7. Assume that you initially invested $1,000,000 in the portfolio and that the distribution ofthe annual rate of return of the portfolio is normal. What is the distribution of the returnof the portfolio 20 years after its formation? Provide the graph of the distribution of thereturn of portfolio.Provide your explanations and definitions in detail and be precise. Comment on your findings.Provide references for content when necessary. Provide your work in detail and explain in yourown words. Support your statements with six (6) peer-reviewed in-text citation(s) andreference(s).CLA2 Comprehensive Learning Assessment (CLA 2) Presentation:In addition to your CLA2 report, please prepare a professional PowerPoint presentationsummarizing your findings for CLA2. The presentation will consist of your major findings,analysis, and recommendations in a concise presentation of 15 slides (minimum). You shoulduse content from your CLA2 report as material for your PowerPoint presentation. Anagenda, executive summary, and references slides should also be included.
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