Question
For Korea Q3 AVG 0.00513579 STD DEV 0.05904238 COVAR -0.0004834 Correl -0.0488705 For China Q3 AVG 0.00479667 STD DEV 0.0630638 COVAR -0.0006121 Correl -0.0579383 For
For Korea
Q3 | |
AVG | 0.00513579 |
STD DEV | 0.05904238 |
COVAR | -0.0004834 |
Correl | -0.0488705 |
For China
Q3 | |
AVG | 0.00479667 |
STD DEV | 0.0630638 |
COVAR | -0.0006121 |
Correl | -0.0579383 |
For Sweden
Q3 | |
AVG | 0.00527378 |
STD DEV | 0.05362636 |
COVAR | -0.0001091 |
Correl | -0.0121448 |
1. To achieve international diversification, John invests in the Korea and China indexes. Whatare the weights on the two indexes to achieve the optimal international portfolio? What arethe mean and standard deviation of returns on his optimal international portfolio? [All calculations should be done in EXCEL with clear labels.] 2. Mary instead invests in the Korean and Sweden indexes. What are the weights on the two indexes to achieve the optimal international portfolio? What are the mean and standard deviation of returns on her optimal international portfolio? [All calculations should be done in EXCEL with clear labels.] 3. Discuss whose optimal portfolio performs better (John or Mary), and explain why. Also discuss potential reason(s) that causes the difference.
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