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PLEASE CREATE A EFFICIENT FRONTIER GRAPH FOR QUESTION 5 USING THE GIVEN DATA. Stock Allocation Bond Allocation Return Risk Sharpe Ratio Risk free return (Rfr)
PLEASE CREATE A EFFICIENT FRONTIER GRAPH FOR QUESTION 5 USING THE GIVEN DATA.
Stock Allocation | Bond Allocation | Return | Risk | Sharpe Ratio | Risk free return (Rfr) | 0.03 | |
0% | 100% | 6.00% | 8.00% | 0.38 | stock return (rtn) | 0.1 | |
5% | 95% | 6.20% | 7.82% | 0.41 | Standard deviation stock (SD1) | 0.15 | |
10% | 90% | 6.40% | 7.71% | 0.44 | bond return E (rtn) | 0.06 | |
15% | 85% | 6.60% | 7.68% | 0.47 | Standard deviation bond (SD2) | 0.08 | |
20% | 80% | 6.80% | 7.72% | 0.49 | Correlation (r) | 0.25 | |
25% | 75% | 7.00% | 7.83% | 0.51 | |||
30% | 70% | 7.20% | 8.01% | 0.52 | |||
35% | 65% | 7.40% | 8.26% | 0.53 | |||
40% | 60% | 7.60% | 8.57% | 0.54 | |||
45% | 55% | 7.80% | 8.93% | 0.54 | |||
50% | 50% | 8.00% | 9.34% | 0.54 | |||
55% | 45% | 8.20% | 9.79% | 0.53 | |||
60% | 40% | 8.40% | 10.28% | 0.53 | |||
65% | 35% | 8.60% | 10.80% | 0.52 | |||
70% | 30% | 8.80% | 11.34% | 0.51 | |||
75% | 25% | 9.00% | 11.91% | 0.50 | |||
80% | 20% | 9.20% | 12.50% | 0.50 | |||
85% | 15% | 9.40% | 13.10% | 0.49 | |||
90% | 10% | 9.60% | 13.72% | 0.48 | |||
95% | 5% | 9.80% | 14.36% | 0.47 | |||
100% | 0% | 10.00% | 15.00% | 0.47 | |||
43.50% | 56.50% | 7.74% | 8.82% | 0.54 |
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