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Single Index Model and Constant Correlation Model

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He is my Assignment 3. Please read the requirement carefully and prepare the hard copy report.

The format of the report will be like (Also include in Requirement):

  1. Complete set of tables for SIM and CCM including the beta for each security.
  2. The columns on these tables should have clear labels so that I know what the figures on
    these columns are.
  3. If you had negative beta for some of the securities, explain how you have handled these
    securities.
  4. You should have an explanation/analysis for the way you obtained your portfolio (the one
    obtained with your model) as well as a good explanation for your last part (part 9).
    Simply reporting the expected return and variance of each portfolio is not enough.
  5. You may use any method you want for your own model. Examples are:
    Equally Weighted Portfolios
    Portfolios with weights in reverse order of market risks
    Portfolios with weights in reverse order of total risks
    etc.

I don’t have any page or word limited, Just briefly explain.

I selected 20 company and All the raw bates was located in Assignment Two file.

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