Ouarter uncements Intro You must complete this assignment in the next 2 hours. Save each answer immediately by clicking on the "Save" button. You can change your answer any time before your time is up. Unsaved answers will not be submitted. The following table shows historical end-of-week adjusted close prices (including dividends) for a stock and the S&P 500. cussion les B D s 1 1 Week Stock e S&P 500 2,535 2 2 0 32.74 3 1 eru 33.38 36.31 2,477 2,499 4 2 SAccess 5 3 35.68 2,511 6 6 4 33.06 2,564 nt Experience ching 7 5 35.36 2,490 8 6 37.13 2,562 9 7 32.87 2,501 10 8 33.2 11 9 34.08 2,599 2,752 2,715 28,205 =SUM(C2:C12) 12 10 35.25 13 Sum 379.06 Copy and paste all data into your own spreadsheet. Calculate the sum of the prices for both assets to check that you copied all values correctly. If your sums match those shown above, you can delete row 13 in your spreadsheet. Assume that the stock has an expected return of 13% and the S&P 500 of 6% (both EARs), and that the annualized variances and covariance stay the same as in the past. Hint: The covariance of returns over N weeks is N times the weekly covariance. 5 Hint: Since we're looking at only one period of one year), the distinction between rebalancing and not rebalancing is irrelevant here. erience 1.3160 Save Attempt 1/1 Part 11 What is the annual Sharpe ratio of the optimal risky portfolio? 3+ decimals Save Submit assignment Ouarter uncements Intro You must complete this assignment in the next 2 hours. Save each answer immediately by clicking on the "Save" button. You can change your answer any time before your time is up. Unsaved answers will not be submitted. The following table shows historical end-of-week adjusted close prices (including dividends) for a stock and the S&P 500. cussion les B D s 1 1 Week Stock e S&P 500 2,535 2 2 0 32.74 3 1 eru 33.38 36.31 2,477 2,499 4 2 SAccess 5 3 35.68 2,511 6 6 4 33.06 2,564 nt Experience ching 7 5 35.36 2,490 8 6 37.13 2,562 9 7 32.87 2,501 10 8 33.2 11 9 34.08 2,599 2,752 2,715 28,205 =SUM(C2:C12) 12 10 35.25 13 Sum 379.06 Copy and paste all data into your own spreadsheet. Calculate the sum of the prices for both assets to check that you copied all values correctly. If your sums match those shown above, you can delete row 13 in your spreadsheet. Assume that the stock has an expected return of 13% and the S&P 500 of 6% (both EARs), and that the annualized variances and covariance stay the same as in the past. Hint: The covariance of returns over N weeks is N times the weekly covariance. 5 Hint: Since we're looking at only one period of one year), the distinction between rebalancing and not rebalancing is irrelevant here. erience 1.3160 Save Attempt 1/1 Part 11 What is the annual Sharpe ratio of the optimal risky portfolio? 3+ decimals Save Submit assignment
