Assignment: Portfolio

Management
Submitted To:
Dr. Fayyaz Sheikh

Submitted By:
Muhammad Usama
13036
BBA Morning
Banking and Finance Section
A
PSO Shell Weight 1Weight 2E(R) 1 E(R) 2 R - E(R)1 (R - E(R)1)^2 P P(R - E(R)1)^2 R - E(R)2 (R - E(R)2)^2
124 139 1 0 15.43 0 0 0 0.25 0 29.7 882.09
124 143 0.95 0.05 14.8105 1.4915 0.7795 2.22457225 0.5 1.112286125 28.3385 803.0705823
123 145 0.9 0.1 14.301 3.026 1.589 9.156676 0.25 2.289169 27.234 741.690756
124 145 0.85 0.15 13.345 4.8525 2.355 23.54675625 0.25 5.886689063 27.4975 756.1125063
123 145 0.8 0.2 12.544 6.39 3.136 40.8321 0.5 20.41605 25.56 653.3136
122 141 0.75 0.25 11.82 8.0625 3.94 65.00390625 0.25 16.25097656 24.1875 585.0351563
124 140 0.7 0.3 11.501 9.825 4.929 96.530625 0.25 24.13265625 22.925 525.555625
126 144 0.65 0.35 10.699 11.557 5.761 133.564249 0.5 66.7821245 21.463 460.660369
126 146 0.6 0.4 9.738 13.136 6.492 172.554496 0.25 43.138624 19.704 388.247616
128 145 0.55 0.45 8.8495 15.039 7.2405 226.171521 0.25 56.54288025 18.381 337.861161
130 145 0.5 0.5 8.165 17.355 8.165 301.196025 0.5 150.5980125 17.355 301.196025
121 151 0.45 0.55 7.2675 19.569 8.8825 382.945761 0.25 95.73644025 16.011 256.352121
121 151 0.4 0.6 6.748 20.676 10.122 427.496976 0.25 106.874244 13.784 189.998656
130 150 0.35 0.65 6.1145 22.7045 11.3555 515.4943203 0.5 257.7471601 12.2255 149.4628503
130 147 0.3 0.7 5.439 24.584 12.691 604.373056 0.25 151.093264 10.536 111.007296
133 159 0.25 0.75 4.54 26.025 13.62 677.300625 0.25 169.3251563 8.675 75.255625
135 161 0.2 0.8 3.728 27.824 14.912 774.174976 0.5 387.087488 6.956 48.385936
142 157 0.15 0.85 2.739 29.937 15.521 896.223969 0.25 224.0559923 5.283 27.910089
140 159 0.1 0.9 1.835 32.004 16.515 1024.256016 0.25 256.064004 3.556 12.645136
137 162 0.05 0.95 0.965 33.9055 18.335 1149.58293 0.5 574.7914651 1.7845 3.18444025
140 160 0 1 0 36.05 20.69 1299.6025 0.25 324.900625 0 0
141 160 0.2 0.8 4.314 28.72 17.256 824.8384 0.25 206.2096 7.18 51.5524
143 162 0.4 0.6 8.628 21.696 12.942 470.716416 0.5 235.358208 14.464 209.207296
 143 160 0.6 0.4 13.59 14.68 9.06 215.5024 0.25 53.8756 22.02 484.8804
143 157 0.8 0.2 18.64 7.22 4.66 52.1284 0.25 13.0321 28.88 834.0544
143 151 1 0 21.67 0 0 0 0.25 0 36.68 1345.4224
140 156 0.9 0.1 20.412 3.63 2.268 13.1769 0.5 6.58845 32.67 1067.3289
140 163 0.8 0.2 18.544 7.326 4.636 53.670276 0.25 13.417569 29.304 858.724416
141 154 0.7 0.3 16.163 11.145 6.927 124.211025 0.25 31.05275625 26.005 676.260025
145 150 0.6 0.4 14.19 15.312 9.46 234.457344 0.5 117.228672 22.968 527.529024
146 152 0.5 0.5 12.12 19.465 12.12 378.886225 0.25 94.72155625 19.465 378.886225
157 152 0.4 0.6 9.988 23.112 14.982 534.164544 0.25 133.541136 15.408 237.406464
164 148 0.3 0.7 7.389 27.16 17.241 737.6656 0.5 368.8328 11.64 135.4896
166 148 0.2 0.8 4.95 31.256 19.8 976.937536 0.25 244.234384 7.814 61.058596
166 151 0.1 0.9 2.484 34.65 22.356 1200.6225 0.25 300.155625 3.85 14.8225
167 151 0 1 0 38.75 25.04 1501.5625 0.5 750.78125 0 0
177 162 0.5 0.5 12.765 19.435 12.765 377.719225 0.25 94.42980625 19.435 377.719225
175 171 0.45 0.55 11.295 21.428 13.805 459.159184 0.25 114.789796 17.532 307.371024
177 169 0.4 0.6 10.008 23.088 15.012 533.055744 0.5 266.527872 15.392 236.913664
176 166 0.35 0.65 8.9145 25.4605 16.5555 648.2370603 0.25 162.0592651 13.7095 187.9503903
175 162 0.3 0.7 7.503 27.503 17.507 756.415009 0.25 189.1037523 11.787 138.933369
176 165 0.25 0.75 6.2375 29.355 18.7125 861.716025 0.5 430.8580125 9.785 95.746225
174 165 0.4 0.6 10.128 23.73 15.192 563.1129 0.25 140.778225 15.82 250.2724
143.6744 153.72093 Column Q Column R Column T Column U

100

80

60

40

20

0
1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132333435363
-20
40

20

0
1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132333435363
-20
P(R - E(R)2)^2 S.D1 S.D2 R1 - Mean 1 R2 - Mean2 Covar r1,2 = 1 r1,2 = 0.5 r1,2 = 0 r1,2 = -0.5
220.5225 0 14.85 -5.967083333 -6.779791667 40.45558186 0 0 0 0
401.5352911 1.054649764 20.03834552 -5.807083333 -6.649791667 38.61589436 21.13343638 10.56671819 0 -10.56671819
185.422689 1.513 13.617 -5.507083333 -6.219791667 34.25291102 20.602521 10.3012605 0 -10.3012605
189.0281266 2.42625 13.74875 -5.697083333 -4.129791667 23.52776727 33.35790469 16.67895234 0 -16.67895234
326.6568 4.518412332 18.07364933 -5.717083333 -4.529791667 25.89719644 81.6642 40.8321 0 -40.8321
146.2587891 4.03125 12.09375 -5.637083333 -4.229791667 23.84368811 48.75292969 24.37646484 0 -24.37646484
131.3889063 4.9125 11.4625 -4.967083333 -3.729791667 18.52618602 56.30953125 28.15476563 0 -28.15476563
230.3301845 8.17203307 15.17663284 -4.937083333 -3.459791667 17.08127977 124.0239455 62.01197275 0 -62.01197275
97.061904 6.568 9.852 -5.167083333 -3.639791667 18.80710686 64.707936 32.353968 0 -32.353968
84.46529025 7.5195 9.1905 -5.307083333 -3.059791667 16.23856936 69.10796475 34.55398238 0 -34.55398238
150.5980125 12.27183819 12.27183819 -5.067083333 -1.769791667 8.967681858 150.5980125 75.29900625 0 -75.29900625
64.08803025 9.7845 8.0055 -5.247083333 -0.899791667 4.721281858 78.32981475 39.16490738 0 -39.16490738
47.499664 10.338 6.892 -4.527083333 -2.019791667 9.143765191 71.249496 35.624748 0 -35.624748
74.73142513 16.05450591 8.644733953 -3.927083333 -1.549791667 6.086161024 138.7869324 69.39346619 0 -69.39346619
27.751824 12.292 5.268 -3.267083333 -1.359791667 4.442552691 64.754256 32.377128 0 -32.377128
18.81390625 13.0125 4.3375 -3.237083333 -1.779791667 5.761333941 56.44171875 28.22085938 0 -28.22085938
24.192968 19.67453908 4.91863477 -2.757083333 -1.699791667 4.686467274 96.771872 48.385936 0 -48.385936
6.97752225 14.9685 2.6415 -3.137083333 -1.259791667 3.952071441 39.53929275 19.76964638 0 -19.76964638
3.161284 16.002 1.778 -3.047083333 -0.919791667 2.802681858 28.451556 14.225778 0 -14.225778
1.592220125 23.97480897 1.261832051 -2.097083333 -0.789791667 1.656258941 30.25218238 15.12609119 0 -15.12609119
0 18.025 0 -0.707083333 -0.429791667 0.303898524 0 0 0 0
12.8881 14.36 3.59 0.172916667 -0.579791667 -0.100255642 51.5524 25.7762 0 -25.7762
104.603648 15.34138872 10.22759248 0.172916667 -0.319791667 -0.055297309 156.905472 78.452736 0 -78.452736
 121.2201 7.34 11.01 1.252916667 0.220208333 0.275902691 80.8134 40.4067 0 -40.4067
208.5136 3.61 14.44 1.902916667 -0.379791667 -0.722711892 52.1284 26.0642 0 -26.0642
336.3556 0 18.34 0.272916667 0.200208333 0.054640191 0 0 0 0
533.66445 2.566797616 23.10117854 1.282916667 -0.179791667 -0.230657726 59.29605 29.648025 0 -29.648025
214.681104 3.663 14.652 1.782916667 0.150208333 0.267808941 53.670276 26.835138 0 -26.835138
169.0650063 5.5725 13.0025 1.692916667 0.670208333 1.134606858 72.45643125 36.22821563 0 -36.22821563
263.764512 10.82721903 16.24082855 2.252916667 1.800208333 4.055719358 175.843008 87.921504 0 -87.921504
94.72155625 9.7325 9.7325 2.842916667 2.450208333 6.965738108 94.72155625 47.36077813 0 -47.36077813
59.351616 11.556 7.704 3.572916667 2.040208333 7.289494358 89.027424 44.513712 0 -44.513712
67.7448 19.20502018 8.230722933 3.232916667 2.320208333 7.501040191 158.0712 79.0356 0 -79.0356
15.264649 15.628 3.907 3.352916667 2.590208333 8.684752691 61.058596 30.529298 0 -30.529298
3.705625 17.325 1.925 3.442916667 2.020208333 6.955408941 33.350625 16.6753125 0 -16.6753125
0 27.40038777 0 3.642916667 2.270208333 8.270179774 0 0 0 0
94.42980625 9.7175 9.7175 4.132916667 2.390208333 9.878531858 94.42980625 47.21490313 0 -47.21490313
76.842756 10.714 8.766 3.702916667 2.480208333 9.184004774 93.918924 46.959462 0 -46.959462
118.456832 16.32568136 10.88378758 3.622916667 2.000208333 7.246588108 177.685248 88.842624 0 -88.842624
46.98759756 12.73025 6.85475 4.072916667 2.690208333 10.95699436 87.26268119 43.63134059 0 -43.63134059
34.73334225 13.7515 5.8935 3.612916667 2.810208333 10.15304852 81.04446525 40.52223263 0 -40.52223263
47.8731125 20.75711956 6.919039854 3.552916667 2.660208333 9.451498524 143.6193375 71.80966875 0 -71.80966875
62.5681 11.865 7.91 3.922916667 3.070208333 12.04417144 93.85215 46.926075 0 -46.926075
nT Column U

2728293031323334353637383940414243
2728293031323334353637383940414243
r1,2 = -1 Roll Chances Probability Chances
0 1 0 0 1 2
-21.13343638 2 2 0.5 1 2 3
-20.602521 3 1 0.25 2 2 4
-33.35790469 4 1 0.25
-81.6642
-48.75292969
-56.30953125
-124.0239455
-64.707936
-69.10796475
-150.5980125
-78.32981475
-71.249496
-138.7869324
-64.754256
-56.44171875
-96.771872
-39.53929275
-28.451556
-30.25218238
0
-51.5524
-156.905472
 -80.8134
-52.1284
0
-59.29605
-53.670276
-72.45643125
-175.843008
-94.72155625
-89.027424
-158.0712
-61.058596
-33.350625
0
-94.42980625
-93.918924
-177.685248
-87.26268119
-81.04446525
-143.6193375
-93.85215