A Question 9 (1 point) Retake question Listen Consider the "UDW Investment Strategy" case problem that was first discussed in tutorials in Week 8 and then reviewed in class in Week 9. What is the optimal portfolio return for a maximum risk tolerance of 0.0577. Report this return as a percentage using four decimals (e.g., for an optimal return of 12.3456%, enter 12.3456). Your Answer: Answer B C D E F Decision Variables Return Risk Min 18% 0.10 12.5% 0.07 7.5% 0.01 Max 20% 40% 20% 50% 30% Investment Allocation 0.00% 0.00% 0.00% $800,000.00 0.05 Investment Allocation 0.00% A 1 JDW Investment Model 2 3 Data Parameters 4 Growth Fund 5 Income Fund 6 Money Market 7 8 Total Budget 9 Risk Tolerance 10 11 Model Equations 12 13 Portfolio Return 14 Portfolio Risk 15 Allocation 16 Cash 17 18 19 20 21 22 23 24 25 26 0.00% 0.000 0% 100% Growth Fund Income Fund Money Market Cash 100% H K G Portfolio Simulation 50% 20% A B D E 1 JDW Investment Model Decision Variables 2 3 Data Parameters Return Risk Min Max Investment Allocation 4 Growth Fund 18% 0.10 20% 40% 31.11% 5 Income Fund 12.5% 0.07 20% 20.00% 6 Money Market 7.5% 0.01 30% 48.89% 7 8 Total Budget $800,000.00 Investment Allocation 9 Risk Tolerance 0.05 ON 10 11 Model Equations 21.11% Growth Fund 12 41% Income Fund 13 Portfolio Return 11.77% Money Market 14 Portfolio Risk 0.05 15 Allocation Cash 100% 20.00% 16 Cash OX 1 18 JDW Investment Risk Return Portfolio Visualization 19 12 20 11.00 21 12:50 22 200 23 11:30 24 25 10.30 26 1000 JOW Spreachheet Model JDW Portfolio Simulation JOW Portfolio Optimization Growth Fund Income Fund Money Market Return Risk 20% 20% 60% 10.60% 0.010 20% 25% 55% 10,85% 0,043 20% 30% 50% 11.10% 0.046 20% 35% 45% 11.35% 0,049 20% 40% 40% 11.60% 0.052 45% 35% 11.85% 0.055 20% 50% 30% 12.10% 0.058 25% 20% 55% 11.13% 0.045 25% 25% 50% 11.3896 0.048 25% 30% 45% 11.63% 0.051 25% 35% 40% 11.88% 0,054 25% 40% 35% 12 13% 0.057 30% 45% 25% 12.90% 0.064 30% 20% 50% 11.65% 0.049 30% 25% 45% 11.90% 0.052 30% 30% 40% 12.15% 0.055 30% 35% 35% 12.40% 0.058 30% 40% 30% 12.65% 0.061 35% 20% 45% 12.18% 0.054 35% 25% 40% 12.43% 0.057 352 30% 35% 12.68% 0.060 35% 35% 30% 12910.063 40% 20% 40% 12.7015 0.058 4 26 1001 A Question 9 (1 point) Retake question Listen Consider the "UDW Investment Strategy" case problem that was first discussed in tutorials in Week 8 and then reviewed in class in Week 9. What is the optimal portfolio return for a maximum risk tolerance of 0.0577. Report this return as a percentage using four decimals (e.g., for an optimal return of 12.3456%, enter 12.3456). Your Answer: Answer B C D E F Decision Variables Return Risk Min 18% 0.10 12.5% 0.07 7.5% 0.01 Max 20% 40% 20% 50% 30% Investment Allocation 0.00% 0.00% 0.00% $800,000.00 0.05 Investment Allocation 0.00% A 1 JDW Investment Model 2 3 Data Parameters 4 Growth Fund 5 Income Fund 6 Money Market 7 8 Total Budget 9 Risk Tolerance 10 11 Model Equations 12 13 Portfolio Return 14 Portfolio Risk 15 Allocation 16 Cash 17 18 19 20 21 22 23 24 25 26 0.00% 0.000 0% 100% Growth Fund Income Fund Money Market Cash 100% H K G Portfolio Simulation 50% 20% A B D E 1 JDW Investment Model Decision Variables 2 3 Data Parameters Return Risk Min Max Investment Allocation 4 Growth Fund 18% 0.10 20% 40% 31.11% 5 Income Fund 12.5% 0.07 20% 20.00% 6 Money Market 7.5% 0.01 30% 48.89% 7 8 Total Budget $800,000.00 Investment Allocation 9 Risk Tolerance 0.05 ON 10 11 Model Equations 21.11% Growth Fund 12 41% Income Fund 13 Portfolio Return 11.77% Money Market 14 Portfolio Risk 0.05 15 Allocation Cash 100% 20.00% 16 Cash OX 1 18 JDW Investment Risk Return Portfolio Visualization 19 12 20 11.00 21 12:50 22 200 23 11:30 24 25 10.30 26 1000 JOW Spreachheet Model JDW Portfolio Simulation JOW Portfolio Optimization Growth Fund Income Fund Money Market Return Risk 20% 20% 60% 10.60% 0.010 20% 25% 55% 10,85% 0,043 20% 30% 50% 11.10% 0.046 20% 35% 45% 11.35% 0,049 20% 40% 40% 11.60% 0.052 45% 35% 11.85% 0.055 20% 50% 30% 12.10% 0.058 25% 20% 55% 11.13% 0.045 25% 25% 50% 11.3896 0.048 25% 30% 45% 11.63% 0.051 25% 35% 40% 11.88% 0,054 25% 40% 35% 12 13% 0.057 30% 45% 25% 12.90% 0.064 30% 20% 50% 11.65% 0.049 30% 25% 45% 11.90% 0.052 30% 30% 40% 12.15% 0.055 30% 35% 35% 12.40% 0.058 30% 40% 30% 12.65% 0.061 35% 20% 45% 12.18% 0.054 35% 25% 40% 12.43% 0.057 352 30% 35% 12.68% 0.060 35% 35% 30% 12910.063 40% 20% 40% 12.7015 0.058 4 26 1001