FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please calculate the risk and expected return using STDEV.P and AVERAGE for each column of returns. Please construct two portfolios and then calculate the risk

Please calculate the risk and expected return using STDEV.P and AVERAGE for each column of returns. Please construct two portfolios and then calculate the risk of the portflios. Portflio 1 will be 50% asset A and 50% asset B. Portfolio 2 will be 50% asset 1 and 50% asset 3.

Please summarize the risk and return for each portfolio.

image text in transcribed outcome number return on return on return on asset A asset B asset C 1 0.00% 0.00% 2.00% 2 0.00% 0.00% 2.00% 3 1.00% -1.00% 1.00% 4 -1.00% 1.00% 0.00% 5 -1.00% 1.00% -2.00% 6 1.00% -1.00% -1.00% 7 -1.00% 1.00% 0.00% 8 -1.00% 1.00% 1.00% 9 1.00% -1.00% 2.00% 10 0.00% 0.00% 0.00% 11 1.00% -1.00% -1.00% 12 1.00% -1.00% 1.00% 13 0.00% 0.00% -1.00% 14 -1.00% 1.00% -2.00% 15 -1.00% 1.00% 1.00% 16 0.00% 0.00% 2.00% 17 1.00% -1.00% 1.00% 18 1.00% -1.00% -2.00% 19 1.00% -1.00% -2.00% 20 -1.00% 1.00% 0.00% 21 0.00% 0.00% -1.00% 22 -1.00% 1.00% -1.00% 23 -1.00% 1.00% 2.00% 24 0.00% 0.00% 2.00% 25 0.00% 0.00% 2.00% 26 0.00% 0.00% 0.00% 27 -1.00% 1.00% -1.00% 28 1.00% -1.00% 0.00% 29 -1.00% 1.00% -1.00% 30 0.00% 0.00% 1.00% 31 -1.00% 1.00% 1.00% 32 0.00% 0.00% 0.00% 33 -1.00% 1.00% 2.00% 34 0.00% 0.00% -2.00% 35 -1.00% 1.00% 1.00% 36 0.00% 0.00% -2.00% 37 1.00% -1.00% 0.00% 38 -1.00% 1.00% 0.00% 39 1.00% -1.00% 0.00% 40 1.00% -1.00% -2.00% 41 1.00% -1.00% 2.00% 42 -1.00% 1.00% 2.00% 43 0.00% 0.00% 1.00% 44 0.00% 0.00% 2.00% 45 -1.00% 1.00% -1.00% 46 0.00% 0.00% 1.00% 47 0.00% 0.00% 1.00% 48 -1.00% 1.00% 0.00% 49 0.00% 0.00% 0.00% 50 -1.00% 1.00% -2.00%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Finance

Principles Of Finance

Authors: Besley, Scott Besley, Eugene F Brigham, Brigham

4th Edition

0324655886, 9780324655889

More Books

Students also viewed these Finance questions

Question

★★★★★
An aqueous solution is 20.0% by mass of sodium thiosulfate pentahydrate, Na2S2O35H2O. What is the molarity of Na2S2O3 in this solution at 20C? The density of this solution at 20C is 1.174 g/mL.

Answered: 1 week ago

Question

★★★★★
During the last six weeks, the actual costs of materials for Mandarin Company were as follows: The standard materials cost for each week was $ 50,000 with an allowable deviation of 5,000. Required:...

Answered: 1 week ago

Question

★★★★★
Be prepared to discuss your career plans.

Answered: 1 week ago

Question

★★★★★
Suppose Ritter Brothers purchases $400,000 of 5% annual bonds of Clarkson 1. Corporation at face value on January 1, 2016. These bonds pay interest on June 30 and December 31 each year. They mature...

Answered: 1 week ago

Question

★★★★★
During April, the first production department of a process manufacturing system completed its work on 420,000 units of a product and transferred them to the next department. Of these transferred...

Answered: 1 week ago

Question

★★★★★
Following are the probability distribution of returns of portfolio of Stock A and Stock B in equal proportion of weight in each state of economy. You are required to calculate Expected Return and...

Answered: 1 week ago

Question

★★★★★
Question 2 of 3 Liabilities and Fund Balances Current Liabilities Windsor Library Statement of Activities for Year Ended February 28, 2024 Expenses Program Services Circulating library Research...

Answered: 1 week ago

Question

★★★★★
Task 2 You (the learner) appraise the property. Mr Smith is a contractor of construction. Recently 35 employees are working for him. Mr Smith owns 03 road rollers, 01 overhead cranes, 03 excavators...

Answered: 1 week ago

Question

★★★★★
Is or is not.reject or support An education researcher claims that 59% of college students work year-round. In a random sample of 300 college students, 177 say they work year-round. At a = 0.05, is...

Answered: 1 week ago

Question

★★★★★
Shamar invoices a company for $6,000. When he looks at the Customer Balance Summary, he sees an amount of $13,000 that includes unpaid invoices. How can he find detail on the open invoices? Select an...

Answered: 1 week ago

Question

★★★★★
The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $36 million and having a four-year expected life, after which the assets can be salvaged for...

Answered: 1 week ago

Question

★★★★★
1. Avoid conflicts in the relationship

Answered: 1 week ago

Question

★★★★★
3. What is happening here and now (1 is oriented towards the proactive, 2 towards the reactive and 3 is a balance between the two). c. Source of inspiration: When I communicate it is important for me...

Answered: 1 week ago

Question

★★★★★
1. What will happen in the future

Answered: 1 week ago

Previous Question Next Question