Question
55. Assuming the total for each of the actions in the year 53, select their best alternative for a portfolio of two values, where each
55. Assuming the total for each of the actions in the year 53, select their best alternative for a portfolio of two values, where each one represents 50% of the total of its portfolio. Assuming S = 12.50%, S= 10%, S f = 13% and PAB = 0.88. Evidence all their calculations and identify the reason for his selection taking into account the principles of the modern portfolio theory (MPT).
Investor looking to invest all your money in one of the actions A or B. under normal conditions the action has a yield of 10%, 12% and under poor conditions and 25% in terms of a good economic environment. Action B, yields of 7%, correspond to you 2% and 22% respectively. In both cases, the Pi is 50% under normal conditions, 30% poor and 20% in a good economic environment conditions. Use these data to answer the questions of the 56 to 60.
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