Question
Mr. Anton Liliwaton is considering building a portfolio containing two assets: Asset Sy and asset Nah. Asset Sy will represent 60% of the peso value
Mr. Anton Liliwaton is considering building a portfolio containing two assets: Asset Sy and asset Nah. Asset Sy will represent 60% of the peso value of the portfolio and asset Nah will account 40%. The expected returns over the next 5 years, 2021 to 2025 for each of these assets are as follows:
Expected returns | ||
Year | Asset Sy | Asset Nah |
2021 | 19% | 12% |
2022 | 17% | 14% |
2023 | 16% | 16% |
2024 | 15% | 18% |
2025 | 14% | 20% |
Required:
1. Calculate the expected portfolio return for each of the 5 years
2. Calculate the expected value of portfolio returns over the 5-year period
3. Calculate the standard deviation of expected portfolio return over the 5-year period
4. Calculate the coefficient of variation over the 5-year period.
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