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Consider that you have $4,332,089 to invest across three assets using the price weighted methodology. Your analysis of these assets has provided the information in
Consider that you have $4,332,089 to invest across three assets using the price weighted methodology.
Your analysis of these assets has provided the information in the two tables below.
To 2 decimal places answer the following questions. (Note: numbers in red are negative)
Asset | A | B | C |
Price at beginning of the year (in $) | 65.77 | 137.22 | 88.14 |
Expected price at the end of the year (in $) | 77.22 | 164.77 | 104.12 |
Standard deviation (%) | 31.45 | 44.59 | 38.06 |
Correlation | A | B | C |
A | 1.00 | -0.17 | 0.78 |
B | -0.17 | 1.00 | 0.66 |
C | 0.78 | 0.66 | 1.00 |
Required
- What is the expected compound annual growth rate of return for this portfolio, in percentage terms?
- In dollars and cents, what is the expected value of this portfolio after 12 months?
- What is the standard deviation of this portfolio, in percentage terms?
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