Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please just get me the correct answers. DO NOT LIST STEPS. LIST CORRECT ANSWERS ONLY FOR THE LAST PART. I've asked this question a third

Please just get me the correct answers.

DO NOT LIST STEPS. LIST CORRECT ANSWERS ONLY FOR THE LAST PART.

I've asked this question a third time now.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

FS,IB,LG,LV,SG,SV (b) Solve the model developed in part (a) with a required expected return of 10%. (Round your answers to three decimal places.) FSIBLGLVSGSV====== Objective value R1=10.060FS+17.640IB+32.410LG+32.360LV+33.440SG+24.560SVR2=13.120FS+3.250IB+18.710LG+20.610LV+19.400SG+25.320SVR3=13.470FS+7.510IB+33.280LG+12.930LV+3.850SG6.700SVR4=45.420FS1.330IB+41.460LG+7.060LV+58.680SG+5.430SVR5=21.930FS+7.360IB23.260LG5.370LV9.020SG+17.310SVFS+IB+LG+LV+SG+SV=(S=1d1d2Rd3Rd4Rd5=R includes only deviations below the mean and is considered by many to be a better measure of risk. Min51s=15ds2.) Let FS= proportion of portfolio invested in the foreign stock mutual fund IB= proportion of portfolio invested in the intermediate-term bond fund LG= proportion of portfolio invested in the large-cap growth fund LV= proportion of portfolio invested in the large-cap value fund SG= proportion of portfolio invested in the small-cap growth fund SV= proportion of portfolio invested in the small-cap value fund R= the expected return of the portfolio RS= the return of the portfolio in year s. Min51s=15ds2 \begin{tabular}{|l|r|r|r|r|r|} \hline Mutual Fund & Year 1 & Year 2 & Year 3 & Year 4 & \multicolumn{1}{|c|}{ Year 5 } \\ \hline Foreign Stock & 10.060 & 13.120 & 13.470 & 45.420 & -21.930 \\ \hline Intermediate-Term Bond & 17.640 & 3.250 & 7.510 & -1.330 & 7.360 \\ \hline Large-Cap Growth & 32.410 & 18.710 & 33.280 & 41.460 & -23.260 \\ \hline Large-Cap Value & 32.360 & 20.610 & 12.930 & 7.060 & -5.370 \\ \hline Small-Cap Growth & 33.440 & 19.400 & 3.850 & 58.680 & -9.020 \\ \hline Small-Cap Value & 24.560 & 25.320 & -6.700 & 5.430 & 17.310 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions