Question
Choose arbitrarily one bond fund, one Canadian equity fund, and one international fund that have at least 10 years of data. Obtain the data necessary
Choose arbitrarily one bond fund, one Canadian equity fund, and one international fund that have at least 10 years of data. Obtain the data necessary to calculate the monthly rate of return for the past ten years. find the average rate of return, standard deviation, and correlation coefficients between the three funds. Construct three portfolios from these mutual funds. For each portfolio, calculate the expected rate of return and the standard deviation. Comment on the relative strengths and weaknesses of the portfolios, identifying which you would prefer to invest in. The marking guidelines are as follows:
- (2 Marks) Monthly rates of return over the last 10 years of three funds (Bond, Canadian Equity, International).
- (2 Marks) Average rates of return, standard deviations, and correlation coefficients between the above funds.
- (2 Marks) Portfolio creation Expected rate of return.
- (2 Marks) Portfolio creation Standard Deviation.
- (1 Mark) Overall written report and presentation (Introduction, Conclusion, Graphs, Charts, Tables).
*Note: Websites such as Google Finance and Yahoo Finance offer historical data for funds that you can download to a spreadsheet program. If you cannot find historical data for 10 years, 5 years is also sufficient.
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