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I want to make sure that I'm using the formulas from the provided information in the pictures. the ratios mentioned. (Sharpe ratio, Treynor ratio, weight,
I want to make sure that I'm using the formulas from the provided information in the pictures. the ratios mentioned. (Sharpe ratio, Treynor ratio, weight, and expected return
You work as a junior portfolio manager position with ABC Capital. As part of the normal portfolio review process, the company provides a list of 20 possible investments. You must select at least 6, but not more than 12 investments to create a fully asset-allocated portfolio that will have the characteristics of an 8% expected return, a beta of 0.5 or less, a correlation of less than 60% to the stock market. You will create the portfolio and present it to the company, explaining: Show the calculations for achieving required characteristics (expected return) Calculations for the risk-adjusted rate of return (including Sharpe Ratio and Treynor Ratio) Show your calculations in this spreadsheet. Enter your final answers in the blue area below. Instructions: 1) Copy and paste the name, beta, standard deviation, and correlation for each selected investment. You should have at least 6 listed, but no more than 12. 2) Calculate the Sharpe Ratio, Treynor Ratio, Weight, and Expected Return for each investment. 3) Finally, calculate the required numbers for the entire portfolio. You work as a junior portfolio manager position with ABC Capital. As part of the normal portfolio review process, the company provides a list of 20 possible investments. You must select at least 6, but not more than 12 investments to create a fully asset-allocated portfolio that will have the characteristics of an 8% expected return, a beta of 0.5 or less, a correlation of less than 60% to the stock market. You will create the portfolio and present it to the company, explaining: Show the calculations for achieving required characteristics (expected return) Calculations for the risk-adjusted rate of return (including Sharpe Ratio and Treynor Ratio) Show your calculations in this spreadsheet. Enter your final answers in the blue area below. Instructions: 1) Copy and paste the name, beta, standard deviation, and correlation for each selected investment. You should have at least 6 listed, but no more than 12. 2) Calculate the Sharpe Ratio, Treynor Ratio, Weight, and Expected Return for each investment. 3) Finally, calculate the required numbers for the entire portfolioStep by Step Solution
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