1) the selected two companies in https://www.saudiexchange.sa/wps/portal/tadawul/home/. which are a.Dallah health. b. Budget Saudi, your should be made the maximum benefit of portfolio diversification, that is, you need to show your justification points. Write down your justifications in your excel sheet. You need to download Monthly data for at least 5 years. Refer to Tadawul website: https://www.tadawul.com.sa
I.1. Calculate the Expected rate of return for each of your selected companies.
I.2. Calculate the variance and standard deviation for each of your selected companies.
I.3. If you allocate your amount of investment equally on the two companies, calculate the expected portfolio’s rate of return and the portfolio’s variance and standard deviation.
I.4. If you consider the selected two companies as the only risky assets compromises your risky portfolio, follow all the necessary steps and draw the efficient frontier curve. Explain your efficient frontier curve.
I.5. Specify the MVP, that is, at what weights will you have the MVP using both the graphical and the mathematical approach.
I.6. Check the validity of the CAPM for your selected companies.
I.7. Elaborate about the values of the Beta and the intercept