In Excel, I have the monthly stock price data for the past few years for Asset A and Asset B. I have calculated the monthly returns, mean returns, variances, and standard deviations for both stocks as well as the covariance and correlation.
Then I calculated the weighted portfolios of Asset A and Asset B calculating the return and standard deviation for each portfolio, this let me draw the mean-variance frontier (MVF).
Then I solved the optimisation problem to find the smallest variance portfolio.
Then I found the portfolio with the highest Sharpe Ratio. I used a short-term government bond as a risk-free asset. Then I drew a new efficient frontier.
I am now tasked with: finding the market price of mkt portfolio according to No Arbitrage condition. How do I do this?