Project Title/SubjectEconomicand BaType of ServiceAssignment With CalculationsUrgency 24 to 28 to hours No. of Pages/Wordcount11 page(s)/3025 Words———————StyleHarvard styleDestailed Description1. In answering the questions below you should submit TWO documents:a. A Word or PDF document where the questions are answered (report) and,b. An excel spread sheet with the data collected and your workings.The overall word limit for questions 1 to 3 is 2,000 words, excluding cover page and referencespage, but including any appendix you might add.The cut-off date, for the portfolios (Question 1 to 3) is April 12th. This is the date that must beused to assess/report performance achieved.The short essay (question 4) word limit is 1,000 words.Question 1Your client wants you to produce a set of minimum variance and efficient portfolios with andwithout short selling restriction; using any 20 stocks of your choice. Your cash balance is£500,000.Instructions:1. Portfolio Constructiona. Collect the closing monthly share prices for 61 months for 20 companies from your choice(e.g. Datastream, Eikon, Bloomberg, yahoo finance, etc)b. Derive the minimum variance frontier for various levels of expected returns, without shortselling of risky assets 2c. Derive the minimum variance frontier for various levels of expected returns with restrictedshort-selling (apply whatever restriction you consider appropriate) of risky assets allowed.d. Plot those two minimum variance frontiers.e. Produce a client report explaining your workings and findings.f. Critically discuss the problems associated with short-selling.2. PerformanceRegarding your efficient portfolio (you should select one portfolio from the alternativesproduced) analyse your risk/return performance against an appropriate benchmark(justification of the benchmark should be provided).[30 marks]Question 2You have the mandate to construct an Investment Fund. The initial cash balance is £500,000that you can use in total or partially. In your report you have to:a. Define the Investment objective and policy (strategic asset allocation risk profile,benchmark, constraints, etc.)b. Explanation of the rationale behind the portfolio constructionc. What are the characteristics and composition of your portfolio? Why have youstructured in this way?d. Analyse your risk/return performance against an appropriate benchmark(justification of the benchmark should be provided). It is expected the use of risk adjustedperformance measures e.g. Sharpe ratio).[30 marks]Question 3You are a hedge fund manager. The initial cash balance is £500,000 that you can use in totalor partially. In this task you should apply any of the long/short Portfolio ConstructionTechniques discussed (Market Neutral, Portable Alpha (Equitised) portfolio or HedgeStrategy). In your report you should clearly explain the rationale behind the portfolioconstruction and its composition, how your strategy is implemented, benchmark used andtheoretical payoff.[10 marks]The overall word limit for questions 1 to 3 is 2,000 words, excluding cover page and referencespage, but including any appendix you might add.The cut-off date, for both portfolios (Question 1 and 2) is April 12th. This is the date thatmust be used to assess/report performance achieved.Question 4Many observers think that the Bank of England will raise the base interest rate in the next18/24 months. Explain what could be the motivations and effects of such a policy on the UKeconomy and how this decision can be affected by Brexit.Attached files available to the selected winning bid I will  attached the excel sheets I started with my relevant stock details. Cear  instructions will  also attached for the assignment.———————————————-