Mathematics - Portfolio Theory - Mathematics Assignment Help

Internal Code : 2AE9 Mathematics Assignment Help TASK Determine which investors short sell in this market consisting of the stocks used to calculate the Dow Jones Index and which stocks they short sell. Are there any stocks which no-one will short sell or which everyone will short sell? Carry out the following computational tasks for an optimal portfolio P consisting of the 28 stocks included in the Dow Jones for an agent who wants to invest $200,000 and has a risk factor of t = 0.15 (excluding Visa and Dow & Du Pont). (i) Obtain the dollar investment in each of the stocks and obtain the corresponding expected return and risk of P (ii) Obtain the ??-plane graphical representation and include (all on the same graph): (a) The stocks of the Dow Jones (b) The minimum variance and efficient frontiers. Use a t-range |t| ? 0.35 for your display. (c) A plot of 1000 random feasible portfolios satisfying |xi| ? 20 (for each of the 28 stocks) and ?i ? 0.05 for i = 1, . . . , 1000. You might notice that the random points occupy some region well-separated from theminimum variance frontier (MVF) - comment on this and explain why (This is a/the major part of the question). The indifference curve of an investor with t = 0.15 and their optimal portfolio P