You will be using the Instructor’s Online Server to solve this case. Please go to the invest schema.
You are assigned to work with customer# 78, Sajid Hashmi.Please answer the below questions and
provide full return and risk analysis for this portfolio. Make sure to use frameworks and metrics covered in class. Provide recommendations on rebalancing.
Details regarding what's expected for your deliverable:
Submit one PDF file with screenshots, SQL code (5 points per question), correct results (10 points per question), your descriptions, explanations, recommendations, and advice ( 10 points per question) :
Step1: Identify your client (listed above) in your database - learn about your client and what they have. Create all required relationships between tables (joins) to better understand what assets your client has, asset classifications, and prices.
Step 2: Once you get a table with all your client's assets and their prices (from Step1) - use that data to create a VIEW in the invest schema with data for your client. This view should have the following fields: ticker, date, price, price type. You should name the VIEW with your own first and last name. In your PDF file, please provide a screenshot of the SQL code that creates the VIEW.
Step 3: Using SQL syntax , answer 4 groups of questions listed below (you will get a total of 100 points, 25 points per question):
Here are 4 groups of questions that will help you structure your paper (worth 100 points) :
- (25 points) Using data for your client tickers from the view you created in step2 : what is the most recent 12 months, 18 months, 24 months return for each of the securities (and for the entire portfolio)?
- (25 points) What is the most recent 12months sigma (risk) for each of the securities? What is the average daily return for each of the securities?
- (25 points) Suggest adding a new investment to your portfolio - what would it be and how much risk (sigma) would it add to your client?
- (25 points) Calculate risk adjusted returns for each of your securities by following this formula: AVG(returns for ticker)/STD(returns for ticker). Which of the securities is best from the rest (with highest risk adjusted returns), why?
Each of the 4 questions is worth 25 points - giving a total of 100 points. You will not get additional points for steps 1 and 2. However, failure to perform steps 1 or 2 will results in a failure of the assignment.
Make sure to provide very detailed recommendations for your client. Explain each result in a simple fashion (each question needs commentary)!! I will be looking for correct SQL procedures, syntax, logic, correct results for different time periods, your descriptions, explanations, recommendations, advice, and logic in your paper.