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i need help to calculate the maximum sharpe the y=mx*b. wb for mon var.portfolio You are interested in forming a portfolio with Stock Sand Bond
i need help to calculate the maximum sharpe the y=mx*b. wb for mon var.portfolio
You are interested in forming a portfolio with Stock Sand Bond B. Stock S has an expected return of 18.1% and a standard deviation of returns of 14.7%. Bond B has an expected return of 6.3% and a standard deviation of returns of 5.2%. The correlation coefficient of the returns of S and B is 0.25. The risk-free rate of return is 3% Using increments of one percentage point, fill in the template posted and plot both efficient frontiers (with vs. without the risk-free asset.) When plotting the line for the frontier with the risk-free asset, use a range from 0 to 30 for the X values. Please put the Wb and Ws for the maximum-Sharpe-ratio portfolio in the last row of your data. Please do not forget that the weight in the bond (Wb) for the minimum-variance portfolio needs to be inserted numerically within the Wb column. 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Please put the Wb and Ws for the maximum-Sharpe-ratio portfolio in the last row of your data. Please do not forget that the weight in the bond (Wb) for the minimum-variance portfolio needs to be inserted numerically within the Wb column. 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ZUUM wb for optimal Sharpe Ratio: Term 1 Term 2 Term 3 Total numerator: Compute Compute Compute denominator: Compute Compute Compute Compute Answer: Total Num / Total Demon at (0,rf) = (0, T- w we need to with highest Maximum Sharpe Ratio. (This is our slope.) Find points on line. Computex Sharpe Ratio Compute Compute Compute Compute Compute y=mx+b O Compute 1 Compute 2 Compute 3 Compute 5 Compute Step by Step Solution
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