Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

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

Restaurant Financial Management

Authors: Hyung-il Jung

1st Edition

1774631431, 978-1774631430

More Books

Students also viewed these Finance questions

Question

Explain what Behavioral Finance assumes?

Answered: 1 week ago

Question

explain what is meant by experiential learning

Answered: 1 week ago

Question

identify the main ways in which you learn

Answered: 1 week ago