Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5.1. State your portfolio objectives. Then construct a 10-stock portfolio that you feel is consistent with your objectives. (Use companies that have been public for

5.1. State your portfolio objectives. Then construct a 10-stock portfolio that you feel is consistent with your objectives. (Use companies that have been public for at least 5 years.) Obtain annual dividend and price date for each of the past 5 years.

Calculate the historical return for each stock for each year

Using your findings in part a, calculate the historical portfolio return for each of the 5 years.

Use your findings in part b to calculate the average portfolio return over the 5 years.

Use your findings in part b and c to find the standard deviation of the portfolios returns over the 5-year period.

Use the historical average return from part c and the standard deviation from part d to evaluate the portfolios return and risk in light of your stated portfolio objectives.

Use these 10 stocks:

CSL

NAB

MQG

BHP

WDS

TLS

JBH

LYC

GMG

XRO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mastering Islamic Finance

Authors: Faizal Karbani

1st Edition

1292001445, 978-1292001449

More Books

Students also viewed these Finance questions