1) What has been the expected return and risk for the S&P 500 during that time period (average annual return and standard deviation)?
2) How does the portfolio fair compare to the S&P 500? Explain.
3) Your client has $50,000 to invest and you plan to invest 60% in the security with the highest expected return. What would be the characteristics of this portfolio be (E(R),S)?
4) Which portfolio would you recommend to your client? The one created in above (1 above) or the portfolio in (4) explain your reasoning.
Attachment:- ret.xls