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Calculate an optimal risky fortfolio based on the above data. The items shaded in yellow on the second picture are what need to be calculated.
Calculate an optimal risky fortfolio based on the above data. The items shaded in yellow on the second picture are what need to be calculated.
\begin{tabular}{|r|c|c|} \hline Year & \begin{tabular}{c} Vanguard Bond Fund (bonds) \\ Annual Returns (Ratio) \end{tabular} & \begin{tabular}{c} Fidelity Fund (equity) \\ Annual Returns (Ratio) \end{tabular} \\ \hline 2008 & 0.1028 & -0.4033 \\ \hline 2009 & 0.0006 & 0.2675 \\ \hline 2010 & 0.1001 & 0.1455 \\ \hline 2011 & 0.2294 & -0.0236 \\ \hline 2012 & 0.0793 & 0.1657 \\ \hline 2013 & -0.0894 & 0.2901 \\ \hline 2014 & 0.2027 & 0.1285 \\ \hline 2015 & -0.04 & 0.0335 \\ \hline 2016 & 0.0683 & 0.0482 \\ \hline 2017 & 0.1074 & 0.2382 \\ \hline 2018 & -0.0417 & -0.0524 \\ \hline 2019 & 0.1899 & 0.3348 \\ \hline 2020 & 0.1581 & 0.2643 \\ \hline 2021 & -0.029 & 0.3321 \\ \hline 2022 & -0.2696 & -0.2587 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline Risk-free rate & 0.04 Vanguard Bond Fund (Bonds) & Fidelity Fund (Equity) & & \\ \hline & & & Optimal Vanguard: & \#DIV/O! \\ \hline Expected Return & & & Optimal Fidelity: & \#DIV/O! \\ \hline Standard Deviation & & & & \\ \hline Correlation Coefficient & & & & \\ \hline \end{tabular} \begin{tabular}{|r|c|c|} \hline Year & \begin{tabular}{c} Vanguard Bond Fund (bonds) \\ Annual Returns (Ratio) \end{tabular} & \begin{tabular}{c} Fidelity Fund (equity) \\ Annual Returns (Ratio) \end{tabular} \\ \hline 2008 & 0.1028 & -0.4033 \\ \hline 2009 & 0.0006 & 0.2675 \\ \hline 2010 & 0.1001 & 0.1455 \\ \hline 2011 & 0.2294 & -0.0236 \\ \hline 2012 & 0.0793 & 0.1657 \\ \hline 2013 & -0.0894 & 0.2901 \\ \hline 2014 & 0.2027 & 0.1285 \\ \hline 2015 & -0.04 & 0.0335 \\ \hline 2016 & 0.0683 & 0.0482 \\ \hline 2017 & 0.1074 & 0.2382 \\ \hline 2018 & -0.0417 & -0.0524 \\ \hline 2019 & 0.1899 & 0.3348 \\ \hline 2020 & 0.1581 & 0.2643 \\ \hline 2021 & -0.029 & 0.3321 \\ \hline 2022 & -0.2696 & -0.2587 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline Risk-free rate & 0.04 Vanguard Bond Fund (Bonds) & Fidelity Fund (Equity) & & \\ \hline & & & Optimal Vanguard: & \#DIV/O! \\ \hline Expected Return & & & Optimal Fidelity: & \#DIV/O! \\ \hline Standard Deviation & & & & \\ \hline Correlation Coefficient & & & & \\ \hline \end{tabular}Step by Step Solution
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