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50% investment in stock X and 50% investment in stock Y 80% investment in stock X and 20% investment in stock X Assume a family
50% investment in stock X and 50% investment in stock Y 80% investment in stock X and 20% investment in stock X Assume a family member is approaching retirement. Her retirement assets include her house and Social Security payments. She also has a 401(k) plan representing one-third of her assets. If she want to own some foreign securities and decides to invest 75 precent of her 401(k) assets accordingly, what percentage of her total assets will this constitute? Closing prices for SilTech and New Mines for the year 1997-2012 are shown below. Calculate the total returns for each stock for the years 2012-1998 to 3 decimal places. Note that the price for 1997 is used to calculate the total return for 1998. Assume that similar returns will continue in the future (i.e., average returns = expected returns). Calculate the covariance between these two stocks bsed on the 15 years of returns. Using the 11 different proportions that SilTech could constitute of the portfolio rangingfrom 0% to 100% in 10% increments, calculate the portfolio variance, standard deviation and expected return. Plot the tradeoff between return and risk for these two stocks based on the calculation in Use the XY scatter diagram in Excel
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