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Asset Class Expected Ret. St Dev US Equity Foreign Equity Bonds REITs Commodities US Equity 12.94% 15.21% 1 Foreign Equity 12.42% 14.44% 0.62 1 Bonds
Asset Class | Expected Ret. | St Dev | US Equity | Foreign Equity | Bonds | REITs | Commodities |
US Equity | 12.94% | 15.21% | 1 | ||||
Foreign Equity | 12.42% | 14.44% | 0.62 | 1 | |||
Bonds | 5.40% | 11.10% | 0.25 | 0.06 | 1 | ||
REITs | 9.44% | 13.54% | 0.56 | 0.4 | 0.16 | 1 | |
Commodities | 10.05% | 18.43% | -0.02 | 0.01 | -0.07 | -0.01 | 1 |
LTP | 11.65% | 12.02% | |||||
STP | 3.20% | 0% | |||||
Correlation between STP and LTP | 0% | ||||||
Complete Portfolio Weight | STP Weight | LTP Weight | Expected Return | Risk | |||
100% | 100% | 0% | 1.60% | 0.00% | |||
100% | 90% | 10% | 2.02% | 0.82% | |||
100% | 80% | 20% | 2.45% | 2.62% | |||
100% | 70% | 30% | 2.87% | 4.54% | |||
100% | 60% | 40% | 3.29% | 5.99% | |||
100% | 50% | 50% | 3.71% | 6.61% | |||
100% | 40% | 60% | 4.14% | 6.28% | |||
100% | 30% | 70% | 4.56% | 5.12% | |||
100% | 20% | 80% | 4.98% | 3.48% | |||
100% | 10% | 90% | 5.40% | 1.98% | |||
100% | 0% | 100% | 5.83% | 1.44% |
I need help with this Partners Healthcare case study for my investments class. My professor said our equations for Expected Return and Risk are incorrect in the second chart "Complete Portfolio Weight". I have bolded this section. My professor only said "your equation is wrong" and walked away. so please help. if you can show the excel equation it would be appreciated.
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