Average ROI of each stock

Stock AXP HD BNS SBUX

Average Return 0.014203 0.017352 0.010136 0.023866
Standard deviation 0.150373 0.072249 0.081659 0.100447

Correlation matrix
Stock/Stock AXP HD BNS SBUX
AXP 1.000000 0.487866 0.573871 0.629386
HD 0.487866 1.000000 0.392180 0.549479
BNS 0.573871 0.392180 1.000000 0.595575
SBUX 0.629386 0.549479 0.595575 1.000000

Co-variance matrix
Stock/Stock AXP HD BNS SBUX
AXP 0.022612 0.005300 0.007047 0.009507
HD 0.005300 0.005220 0.002314 0.003988
BNS 0.007047 0.002314 0.006668 0.004885
SBUX 0.009507 0.003988 0.004885 0.010090

a) When $25000 is invested in each stock

Expected return = 1.6389308058
Variance = 2.9425602747
Standard Deviation = 1.7153892487
CV= 1.0466514161
Sharpe Ratio= 0.3724698673

b) When 10,20,30,40k are invested in each stock

Expected return = 1.7478045842
Variance = 3.1298070656
Standard Deviation = 1.769126074
CV= 1.0121990124
Sharpe Ratio= 0.4226971697

c) When 10,50,20,20 are invested in each stock

Expected return = 1.6896876967
Variance = 2.9693550189
Standard Deviation = 1.7231816558
CV= 1.0198225738
Sharpe Ratio= 0.4002408535

Choice/Parameter Expected Retrun S.D CV

Choice 1 1.6389308058 1.7153892487 1.0466514161
Choice 2 1.7478045842 1.769126074 1.0121990124
Choice 3 1.6896876967 1.7231816558 1.0198225738
 wa wb wc wd
0.1 0.2 0.3 0.4 0.017478
wa^2*sda wb^2*sdb wc^2*sdc wd^2*sdd
0.00150373 0.00289 0.007349 0.0160716

wa*wb 0.00021201 wb*wc 0.000278 wc*wd 0.001172

wa*wc 0.00042281 wb*wd 0.000638
wa*wd 0.00076053

0.03129807

0.000212 0.000278 0.0011724

0.0004228 0.000638
0.0007605

0.0312981