In the portfolio example in this section (see page 192), half the portfolio assets are invested in the Dow Jones fund and half in a weak economy fund Recalculate the portfolio expected return and the portfolio risk if a 30 of the portfolio assets are invested in the Dow Jones fund and 70 in a weak ...

a E P 0365 0735 44 b E P 0765 0335 56 c Investing 30 in the ...

In the portfolio example in this section (see page 192), half the portfolio assets are invested in

Question:

In the example in this section (see page 192), half the assets are invested in the Dow Jones fund and half in a weak-economy fund. Recalculate the and the risk if
a. 30% of the assets are invested in the Dow Jones fund and 70% in a weak-economy fund.
b. 70% of the assets are invested in the Dow Jones fund and 30% in a weak-economy fund.
c. Which of the three investment strategies (30%, 50%, or 70% in the Dow Jones fund) would you recommend? Why?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...