In Yahoo Finance, find the weekly prices from 09/01/2017 to 08/31/2020 for two Vanguard funds –...

In Yahoo Finance, find the weekly prices from 09/01/2017 to 08/31/2020 for two Vanguard funds – the Vanguard Index 500 fund (symbol VFINX) and the Vanguard High-Yield Corporate Bond fund (VWEHX). The first of these funds tracks the Standard and Poor’s 500, and VWEHX is a junk-bond fund. Compute the weekly mean returns, sample variance, sample standard deviation, sample covariance, and correlation statistics. Graph a weekly mean return and standard deviation frontier of the portfolios composed of these two funds.

Expert Solution

Parameter	Excel formula used
the weekly mean returns	'=Average()
sample variance	= Var.s()
sample standard deviation	'=Stdev.s()
sample covariance	'=Covariance.s()
correlation statistics	'=correl()

The last few rows contain your answers:

	Adjusted close price	Weekly Return
Date	VFINX	VWEHX	VFINX	VWEHX
8/28/2017	217.1326	5.058956
9/4/2017	215.8741	5.082017	-0.58%	0.46%
9/11/2017	219.3752	5.082017	1.62%	0.00%
9/18/2017	218.5047	5.090532	-0.40%	0.17%
9/25/2017	221.1413	5.099041	1.21%	0.17%
10/2/2017	223.8987	5.121309	1.25%	0.44%
10/9/2017	224.26	5.112761	0.16%	-0.17%
10/16/2017	226.2378	5.121309	0.88%	0.17%
10/23/2017	226.7608	5.10421	0.23%	-0.33%
10/30/2017	227.4169	5.10421	0.29%	0.00%
11/6/2017	227.0936	5.07416	-0.14%	-0.59%
11/13/2017	226.951	5.065575	-0.06%	-0.17%
11/20/2017	229.0714	5.082747	0.93%	0.34%
11/27/2017	232.7227	5.091331	1.59%	0.17%
12/4/2017	233.626	5.103401	0.39%	0.24%
12/11/2017	235.832	5.103401	0.94%	0.00%
12/18/2017	235.4612	5.094779	-0.16%	-0.17%
12/25/2017	235.7576	5.103401	0.13%	0.17%
1/1/2018	241.9472	5.152802	2.63%	0.97%
1/8/2018	245.8348	5.144143	1.61%	-0.17%
1/15/2018	247.9839	5.135481	0.87%	-0.17%
1/22/2018	253.524	5.135481	2.23%	0.00%
1/29/2018	243.8385	5.092183	-3.82%	-0.84%
2/5/2018	231.3924	5.032975	-5.10%	-1.16%
2/12/2018	241.5078	5.067746	4.37%	0.69%
2/19/2018	242.8928	5.050361	0.57%	-0.34%
2/26/2018	238.0692	5.032975	-1.99%	-0.34%
3/5/2018	246.599	5.062544	3.58%	0.59%
3/12/2018	243.6474	5.045088	-1.20%	-0.34%
3/19/2018	228.2022	5.018901	-6.34%	-0.52%
3/26/2018	233.8635	5.02763	2.48%	0.17%
4/2/2018	230.6982	5.060078	-1.35%	0.65%
4/9/2018	235.4078	5.095157	2.04%	0.69%
4/16/2018	236.674	5.077617	0.54%	-0.34%
4/23/2018	236.6644	5.060078	0.00%	-0.35%
4/30/2018	236.1656	5.033769	-0.21%	-0.52%
5/7/2018	242.036	5.065362	2.49%	0.63%
5/14/2018	240.8945	5.047744	-0.47%	-0.35%
5/21/2018	241.6811	5.038935	0.33%	-0.17%
5/28/2018	242.9856	5.038935	0.54%	0.00%
6/4/2018	247.0046	5.071726	1.65%	0.65%
6/11/2018	247.1773	5.089429	0.07%	0.35%
6/18/2018	245.019	5.080577	-0.87%	-0.17%
6/25/2018	240.7506	5.045172	-1.74%	-0.70%
7/2/2018	245.5691	5.059401	2.00%	0.28%
7/9/2018	249.3552	5.086076	1.54%	0.53%
7/16/2018	249.4419	5.086076	0.03%	0.00%
7/23/2018	250.9641	5.094967	0.61%	0.17%
7/30/2018	252.9679	5.112751	0.80%	0.35%
8/6/2018	252.5055	5.145848	-0.18%	0.65%
8/13/2018	254.1722	5.136914	0.66%	-0.17%
8/20/2018	256.3976	5.154782	0.88%	0.35%
8/27/2018	258.9121	5.154782	0.98%	0.00%
9/3/2018	256.3591	5.170041	-0.99%	0.30%
9/10/2018	259.4516	5.187992	1.21%	0.35%
9/17/2018	261.677	5.179016	0.86%	-0.17%
9/24/2018	259.2396	5.179016	-0.93%	0.00%
10/1/2018	257.8787	5.175408	-0.52%	-0.07%
10/8/2018	247.3812	5.148359	-4.07%	-0.52%
10/15/2018	247.4876	5.139343	0.04%	-0.18%
10/22/2018	237.7449	5.085246	-3.94%	-1.05%
10/29/2018	243.5596	5.112293	2.45%	0.53%
11/5/2018	248.9388	5.138717	2.21%	0.52%
11/12/2018	245.0979	5.066212	-1.54%	-1.41%
11/19/2018	235.8582	5.048088	-3.77%	-0.36%
11/26/2018	247.4296	5.05715	4.91%	0.18%
12/3/2018	236.1581	5.075375	-4.56%	0.36%
12/10/2018	232.0849	5.075375	-1.72%	0.00%
12/17/2018	216.8431	4.956917	-6.57%	-2.33%
12/24/2018	223.1147	4.947805	2.89%	-0.18%
12/31/2018	227.3542	5.01159	1.90%	1.29%
1/7/2019	233.198	5.141173	2.57%	2.59%
1/14/2019	239.946	5.168665	2.89%	0.53%
1/21/2019	239.4307	5.168665	-0.21%	0.00%
1/28/2019	243.2909	5.205322	1.61%	0.71%
2/4/2019	243.5535	5.222084	0.11%	0.32%
2/11/2019	249.7959	5.249714	2.56%	0.53%
2/18/2019	251.4101	5.268134	0.65%	0.35%
2/25/2019	252.5671	5.286554	0.46%	0.35%
3/4/2019	247.1998	5.272719	-2.13%	-0.26%
3/11/2019	254.4827	5.309721	2.95%	0.70%
3/18/2019	251.235	5.318971	-1.28%	0.17%
3/25/2019	255.6801	5.328222	1.77%	0.17%
4/1/2019	261.0173	5.390491	2.09%	1.17%
4/8/2019	262.4739	5.418373	0.56%	0.52%
4/15/2019	262.2881	5.409078	-0.07%	-0.17%
4/22/2019	265.4553	5.409078	1.21%	0.00%
4/29/2019	266.032	5.409078	0.22%	0.00%
5/6/2019	260.4406	5.405344	-2.10%	-0.07%
5/13/2019	258.6419	5.386672	-0.69%	-0.35%
5/20/2019	255.6899	5.386672	-1.14%	0.00%
5/27/2019	249.0818	5.34933	-2.58%	-0.69%
6/3/2019	260.1962	5.4308	4.46%	1.52%
6/10/2019	261.555	5.44956	0.52%	0.35%
6/17/2019	267.3419	5.505838	2.21%	1.03%
6/24/2019	265.3086	5.496458	-0.76%	-0.17%
7/1/2019	271.1067	5.530376	2.19%	0.62%
7/8/2019	273.3365	5.520954	0.82%	-0.17%
7/15/2019	270.0066	5.502111	-1.22%	-0.34%
7/22/2019	274.4956	5.530376	1.66%	0.51%
7/29/2019	266.0579	5.511532	-3.07%	-0.34%
8/5/2019	264.997	5.526632	-0.40%	0.27%
8/12/2019	262.502	5.517168	-0.94%	-0.17%
8/19/2019	258.7694	5.545559	-1.42%	0.51%
8/26/2019	266.0972	5.573948	2.83%	0.51%
9/2/2019	270.9594	5.608211	1.83%	0.61%
9/9/2019	273.7196	5.598705	1.02%	-0.17%
9/16/2019	272.364	5.617716	-0.50%	0.34%
9/23/2019	268.4743	5.598705	-1.43%	-0.34%
9/30/2019	268.8805	5.579694	0.15%	-0.34%
10/7/2019	270.6566	5.613024	0.66%	0.60%
10/14/2019	272.1464	5.632116	0.55%	0.34%
10/21/2019	275.4913	5.641662	1.23%	0.17%
10/28/2019	279.5959	5.632116	1.49%	-0.17%
11/4/2019	282.181	5.657045	0.92%	0.44%
11/11/2019	284.8154	5.657045	0.93%	0.00%
11/18/2019	283.9866	5.647457	-0.29%	-0.17%
11/25/2019	286.9171	5.666634	1.03%	0.34%
12/2/2019	287.4992	5.700336	0.20%	0.59%
12/9/2019	289.7192	5.729221	0.77%	0.51%
12/16/2019	293.222	5.748479	1.21%	0.34%
12/23/2019	296.3399	5.748479	1.06%	0.00%
12/30/2019	295.9831	5.748479	-0.12%	0.00%
1/6/2020	298.8874	5.783296	0.98%	0.61%
1/13/2020	304.815	5.783296	1.98%	0.00%
1/20/2020	301.7322	5.763954	-1.01%	-0.33%
1/27/2020	295.3983	5.744612	-2.10%	-0.34%
2/3/2020	304.8745	5.798027	3.21%	0.93%
2/10/2020	309.8901	5.827163	1.65%	0.50%
2/17/2020	306.0838	5.817451	-1.23%	-0.17%
2/24/2020	271.0535	5.700907	-11.44%	-2.00%
3/2/2020	272.7981	5.693969	0.64%	-0.12%
3/9/2020	247.9081	5.323471	-9.12%	-6.51%
3/16/2020	211.6622	4.767724	-14.62%	-10.44%
3/23/2020	233.4285	5.040722	10.28%	5.73%
3/30/2020	228.701	5.040722	-2.03%	0.00%
4/6/2020	256.4688	5.29026	12.14%	4.95%
4/13/2020	264.3214	5.417617	3.06%	2.41%
4/20/2020	260.8778	5.300056	-1.30%	-2.17%
4/27/2020	260.3702	5.319649	-0.19%	0.37%
5/4/2020	269.656	5.371793	3.57%	0.98%
5/11/2020	263.7044	5.322601	-2.21%	-0.92%
5/18/2020	272.3233	5.440663	3.27%	2.22%
5/25/2020	280.6039	5.529209	3.04%	1.63%
6/1/2020	294.4977	5.68137	4.95%	2.75%
6/8/2020	280.5641	5.592444	-4.73%	-1.57%
6/15/2020	285.839	5.631967	1.88%	0.71%
6/22/2020	276.3342	5.562803	-3.33%	-1.23%
6/29/2020	288.93	5.582564	4.56%	0.36%
7/6/2020	294.09	5.625388	1.79%	0.77%
7/13/2020	297.82	5.674994	1.27%	0.88%
7/20/2020	297.01	5.754366	-0.27%	1.40%
7/27/2020	302.22	5.794051	1.75%	0.69%
8/3/2020	309.73	5.836961	2.48%	0.74%
8/10/2020	311.86	5.797118	0.69%	-0.68%
8/17/2020	314.24	5.797118	0.76%	0.00%
8/24/2020	324.59	5.827	3.29%	0.52%
Weekly mean Return			0.3017%	0.1002%
Sample Variance			0.0862%	0.0187%
Sample std dev			2.9355%	1.3678%
Covariance			0.0329%
Correlation Coefficient			0.8202

-----------------------------

Frontier graph is:

And the Base data for efficient frontier:

Weight in portfolio
VFINX	VWEHX	Portfolio Weekly Return	Portfolio Std Dev
0%	100%	0.10%	1.37%
1.00%	99%	0.10%	1.38%
2.00%	98%	0.10%	1.39%
3.00%	97%	0.11%	1.40%
4.00%	96%	0.11%	1.41%
5.00%	95%	0.11%	1.42%
6.00%	94%	0.11%	1.43%
7.00%	93%	0.11%	1.45%
8.00%	92%	0.12%	1.46%
9.00%	91%	0.12%	1.47%
10.00%	90%	0.12%	1.48%
11.00%	89%	0.12%	1.49%
12.00%	88%	0.12%	1.51%
13.00%	87%	0.13%	1.52%
14.00%	86%	0.13%	1.53%
15.00%	85%	0.13%	1.54%
16.00%	84%	0.13%	1.56%
17.00%	83%	0.13%	1.57%
18.00%	82%	0.14%	1.58%
19.00%	81%	0.14%	1.60%
20.00%	80%	0.14%	1.61%
21.00%	79%	0.14%	1.62%
22.00%	78%	0.14%	1.64%
23.00%	77%	0.15%	1.65%
24.00%	76%	0.15%	1.67%
25.00%	75%	0.15%	1.68%
26.00%	74%	0.15%	1.70%
27.00%	73%	0.15%	1.71%
28.00%	72%	0.16%	1.72%
29.00%	71%	0.16%	1.74%
30.00%	70%	0.16%	1.75%
31.00%	69%	0.16%	1.77%
32.00%	68%	0.16%	1.78%
33.00%	67%	0.17%	1.80%
34.00%	66%	0.17%	1.81%
35.00%	65%	0.17%	1.83%
36.00%	64%	0.17%	1.84%
37.00%	63%	0.17%	1.86%
38.00%	62%	0.18%	1.87%
39.00%	61%	0.18%	1.89%
40.00%	60%	0.18%	1.91%
41.00%	59%	0.18%	1.92%
42.00%	58%	0.18%	1.94%
43.00%	57%	0.19%	1.95%
44.00%	56%	0.19%	1.97%
45.00%	55%	0.19%	1.99%
46.00%	54%	0.19%	2.00%
47.00%	53%	0.19%	2.02%
48.00%	52%	0.20%	2.03%
49.00%	51%	0.20%	2.05%
50.00%	50%	0.20%	2.07%
51.00%	49%	0.20%	2.08%
52.00%	48%	0.21%	2.10%
53.00%	47%	0.21%	2.12%
54.00%	46%	0.21%	2.13%
55.00%	45%	0.21%	2.15%
56.00%	44%	0.21%	2.17%
57.00%	43%	0.22%	2.18%
58.00%	42%	0.22%	2.20%
59.00%	41%	0.22%	2.22%
60.00%	40%	0.22%	2.23%
61.00%	39%	0.22%	2.25%
62.00%	38%	0.23%	2.27%
63.00%	37%	0.23%	2.28%
64.00%	36%	0.23%	2.30%
65.00%	35%	0.23%	2.32%
66.00%	34%	0.23%	2.33%
67.00%	33%	0.24%	2.35%
68.00%	32%	0.24%	2.37%
69.00%	31%	0.24%	2.39%
70.00%	30%	0.24%	2.40%
71.00%	29%	0.24%	2.42%
72.00%	28%	0.25%	2.44%
73.00%	27%	0.25%	2.45%
74.00%	26%	0.25%	2.47%
75.00%	25%	0.25%	2.49%
76.00%	24%	0.25%	2.51%
77.00%	23%	0.26%	2.52%
78.00%	22%	0.26%	2.54%
79.00%	21%	0.26%	2.56%
80.00%	20%	0.26%	2.58%
81.00%	19%	0.26%	2.60%
82.00%	18%	0.27%	2.61%
83.00%	17%	0.27%	2.63%
84.00%	16%	0.27%	2.65%
85.00%	15%	0.27%	2.67%
86.00%	14%	0.27%	2.68%
87.00%	13%	0.28%	2.70%
88.00%	12%	0.28%	2.72%
89.00%	11%	0.28%	2.74%
90.00%	10%	0.28%	2.76%
91.00%	9%	0.28%	2.77%
92.00%	8%	0.29%	2.79%
93.00%	7%	0.29%	2.81%
94.00%	6%	0.29%	2.83%
95.00%	5%	0.29%	2.85%
96.00%	4%	0.29%	2.86%
97.00%	3%	0.30%	2.88%
98.00%	2%	0.30%	2.90%
99.00%	1%	0.30%	2.92%
100.00%	0%	0.30%	2.94%

jeff jeffy answered 2 years ago

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