State your portfolio objectives. Then construct a 10-stock portfolio that you feel is consistent with your objectives. (Use companies that have been public for at least 5 years.) Obtain annual dividend and price date for each of the past 5 years.
Calculate the historical return for each stock for each year
Using your findings in part a, calculate the historical portfolio return for each of the 5 years.
Use your findings in part b to calculate the average portfolio return over the 5 years.
Use your findings in part b and c to find the standard deviation of the portfolio’s returns over the 5-year period.
Use the historical average return from part c and the standard deviation from part d to evaluate the portfolio’s return and risk in light of your stated portfolio objectives.