Converting into decimal return Date VBTLX VFIAX Jan 12 0 0088 0 0447 Feb 12 0 0004 0 0432 Mar 12 0 0057 0 0329 Apr 12 0 0115 0 0063 May 12 0 0096 0 0601 Jun 12 0 0004 0 0412 Jul 12 0 0139 0 0138 Aug 12 0 0004 0 0225 Sep 12 0 0012 0 0258 Oct 12 0 0012 0 0185 Nov 12 0 002 0 0058 Dec 12 0 0019 0 0091 Jan 13 0 007 0 0518 Feb 13 0 0055 0 0135 Mar 13 0 0009 0 0375 Apr 13 0 0092 0 0192 May 13 0 017 0 0233 Jun 13 0 0164 0 0135 Jul 13 0 0021 0 0509 Aug 13 0 0063 0 029 Sep 13 0 0097 0 0313 Oct 13 0 0079 0 0459 Nov 13 0 0034 0 0304 Dec 13 0 0064 0 0253 Jan 14 0 0155 0 0346 Feb 14 0 0049 0 0457 Mar 14 0 0014 0 0084 Apr 14 0 0078 0 0074 May 14 0 0106 0 0234 Jun 14 0 0012 0 0206 Jul 14 0 0025 0 0138 Aug 14 0 0114 0 04 Sep 14 0 0071 0 014 Oct 14 0 0095 0 0243 Nov 14 0 0066 0 0269 Dec 14 0 001 0 0026 Jan 15 0 0232 0 03 Feb 15 0 0107 0 0574 Mar 15 0 0042 0 0159 Apr 15 0 0035 0 0095 May 15 0 0044 0 0128 Jun 15 0 01 0 0192 Jul 15 0 0077 0 0209 Aug 15 0 0035 0 0604 Sep 15 0 0076 0 0248 Oct 15 0 0002 0 0843 Nov 15 0 0026 0 003 Dec 15 0 0037 0 0158 Jan 16 0 0144 0 0497 Feb 16 0 0067 0 0014 Mar 16 0 0095 0 0678 Apr 16 0 0039 0 0039 May 16 0 0002 0 0179 Jun 16 0 0194 0 0026 Jul 16 0 0065 0 0368 1 Refer to Step 5 1 Calculate the weights of VBTLX and VFIAX that achieve a portfolio allocation that represents an optimal risky portfolio on the efficient frontier, as of the end of December 2015 Given these weights, how much of the $5 million would you invest in VBTLX Write your answer rounded to the nearest whole dollar, with no dollar sign ( $ ) and no commas (e g you would write $2,000,000 as 2000000 ) 1 Refer to Step 5 1 Calculate the weights of VBTLX and VFIAX that achieve a portfolio allocation that represents an optimal risky portfolio on the efficient frontier, as of the end of December 2015 Given these weights, how much of the $5 million would you invest in VBTLX Write your answer rounded to the nearest whole dollar, with no dollar sign ( $ ) and no commas (e g you would write $2,000,000 as 2000000 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 27, 2024

Converting into decimal return Date VBTLX VFIAX Jan-12 0.0088 0.0447 Feb-12 -0.0004 0.0432 Mar-12 -0.0057 0.0329 Apr-12 0.0115 -0.0063 May-12 0.0096 -0.0601 Jun-12 0.0004 0.0412

image text in transcribed

Converting into decimal return
Date	VBTLX	VFIAX
Jan-12	0.0088	0.0447
Feb-12	-0.0004	0.0432
Mar-12	-0.0057	0.0329
Apr-12	0.0115	-0.0063
May-12	0.0096	-0.0601
Jun-12	0.0004	0.0412
Jul-12	0.0139	0.0138
Aug-12	0.0004	0.0225
Sep-12	0.0012	0.0258
Oct-12	0.0012	-0.0185
Nov-12	0.002	0.0058
Dec-12	-0.0019	0.0091
Jan-13	-0.007	0.0518
Feb-13	0.0055	0.0135
Mar-13	0.0009	0.0375
Apr-13	0.0092	0.0192
May-13	-0.017	0.0233
Jun-13	-0.0164	-0.0135
Jul-13	0.0021	0.0509
Aug-13	-0.0063	-0.029
Sep-13	0.0097	0.0313
Oct-13	0.0079	0.0459
Nov-13	-0.0034	0.0304
Dec-13	-0.0064	0.0253
Jan-14	0.0155	-0.0346
Feb-14	0.0049	0.0457
Mar-14	-0.0014	0.0084
Apr-14	0.0078	0.0074
May-14	0.0106	0.0234
Jun-14	0.0012	0.0206
Jul-14	-0.0025	-0.0138
Aug-14	0.0114	0.04
Sep-14	-0.0071	-0.014
Oct-14	0.0095	0.0243
Nov-14	0.0066	0.0269
Dec-14	0.001	-0.0026
Jan-15	0.0232	-0.03
Feb-15	-0.0107	0.0574
Mar-15	0.0042	-0.0159
Apr-15	-0.0035	0.0095
May-15	-0.0044	0.0128
Jun-15	-0.01	-0.0192
Jul-15	0.0077	0.0209
Aug-15	-0.0035	-0.0604
Sep-15	0.0076	-0.0248
Oct-15	0.0002	0.0843
Nov-15	-0.0026	0.003
Dec-15	-0.0037	-0.0158
Jan-16	0.0144	-0.0497
Feb-16	0.0067	-0.0014
Mar-16	0.0095	0.0678
Apr-16	0.0039	0.0039
May-16	0.0002	0.0179
Jun-16	0.0194	0.0026
Jul-16	0.0065	0.0368

1. Refer to Step 5.1. Calculate the weights of VBTLX and VFIAX that achieve a portfolio allocation that represents an "optimal risky portfolio" on the efficient frontier, as of the end of December 2015. Given these weights, how much of the $5 million would you invest in VBTLX? Write your answer rounded to the nearest whole dollar, with no dollar sign ("$") and no commas (e.g- you would write "$2,000,000" as "2000000"). 1. Refer to Step 5.1. Calculate the weights of VBTLX and VFIAX that achieve a portfolio allocation that represents an "optimal risky portfolio" on the efficient frontier, as of the end of December 2015. Given these weights, how much of the $5 million would you invest in VBTLX? Write your answer rounded to the nearest whole dollar, with no dollar sign ("$") and no commas (e.g- you would write "$2,000,000" as "2000000")