Correlation and Correlation Efficient Frontier Curve
What have you learned from the Portfolio Theory; in your own words? (1 paragraph)
Presenting the model of portfolio theory
Correlation
Overview of the correlation and how it impacts diversification
Highlight the main issue in the correlation table using your data.
Calculate the CV of portfolio one with the cryptocurrency and portfolio two without the cryptocurrency. Then
compare their performance with the market and other investments in your portfolio. (ALREADY CALCULATED
The Efficient Frontier Curve (EFC)
Provide an overview of the EFC
Plot all the funds, cryptocurrency, the two companies, the two portfolios, and the market on the EFC
(Please note that the market will be on the EFC, all others with lower CV than the market will outside the EFC
and those with higher CV than the market will be inside the EFC. Also, make sure that you show the name of
each investment on the graph).
Comment on the graph of the EFC