Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 19, 2024

Portfolio Information Total portfolio Value $ 1,000,000 Portfolio Type Balanced Allocation Scheme Bond Allocation (%) 50% Bond Allocation ($) $ 500,000 Equities Allocation (%) 50%

Portfolio Information

Total portfolio Value $ 1,000,000

Portfolio Type Balanced

Allocation Scheme

Bond Allocation (%) 50%

Bond Allocation ($) $ 500,000

Equities Allocation (%) 50%

Equities Allocation ($) $ 500,000

Show calculations and find:

a. Return on Bond Portfolio Allocation (%)

b. Return on Bond Benchmark (%)

c. Risk on Bond Portfolio Allocation

Issuer Name CUSIP Credit Rating Maturity Maturity Type Coupon rate (Yield) YTM Payment frequency

Apple Inc. 037833AZ3 AA+ 2.52 AT MATURITY 3.061 3.027 S/A

Procter & Gamble Co 742718FL8 AA- 3.24 AT MATURITY 2.976 2.934 S/A

3M Co 88579YAR2 A+ 3.01 AT MATURITY 3.295 3.216 S/A

Goldman Sachs Group Inc 38141GVR2 BBB 3.22 AT MATURITY 3.833 3.748 S/A

Bond Benchmarks

Bloomberg US Agg Total Return Value Unhedged USD Index

LBUSTRUU Index

U.S. Aggregate FIGI BBG002F06467 The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency). (Future Ticker: I00001US) Date Last Price

7/29/2022 2162.99

6/30/2022 2111.4

5/31/2022 2145.05

4/29/2022 2131.31

3/31/2022 2215.38

2/28/2022 2278.69

1/31/2022 2304.4

12/31/2021 2355.14

11/30/2021 2361.18

10/29/2021 2354.21

9/30/2021 2354.86

8/31/2021 2375.43

7/30/2021 2379.96

6/30/2021 2353.64

5/31/2021 2337.22

4/30/2021 2329.61

3/31/2021 2311.35

2/26/2021 2340.58

1/29/2021 2374.87

12/31/2020 2392.02

11/30/2020 2388.73

10/30/2020 2365.52

9/30/2020 2376.13

8/31/2020 2377.43

7/31/2020 2396.78

6/30/2020 2361.51

5/29/2020 2346.72

4/30/2020 2335.85

3/31/2020 2295.05

2/28/2020 2308.64

1/31/2020 2267.82

12/31/2019 2225

11/29/2019 2226.55

10/31/2019 2227.69

9/30/2019 2221

8/30/2019 2232.89

7/31/2019 2176.49

6/28/2019 2171.71

5/31/2019 2144.78

4/30/2019 2107.37

3/29/2019 2106.83

2/28/2019 2067.14

1/31/2019 2068.34

Source: Bloomberg LP

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Question

Exercise 12.2 Showthat for a regression model that does not contain an intercept, the diagonal elements of the perpendicular projection operator are equivalent to the estimated squared Mahalanobis...

Answered: 1 week ago

Question

★★★★★

This data table gives annual costs of 223 commercial leases. All of these leases provide office space in a Midwestern city in the United States. For the response, use the cost of the lease (in...

Answered: 1 week ago

Question

★★★★★

please show your work step by step and also show work keep in mind that will be my first time using Xampp TODO Application: Problem Statement: Make a small application that can be used as a simple...

Answered: 1 week ago

Question

★★★★★

Novak Corp. uses the direct method to prepare its statement of cash flows. Novak trial balances at December 31, 2017 and 2016, are as follows. December 31 Debits 2017 2016 Cash $34,700 $31,700...

Answered: 1 week ago

Question

★★★★★

The S-N-curve for an elastic material is characterized by the Basquin relationship, = C.N where C is a material constant, is the stress amplitude, Nr is the number of fully-reversed- stress cycles to...

Answered: 1 week ago

Question

★★★★★

2. Write a clarifying statement for your top five prioritized values. Answer the question, "What does this value really mean to me?" If you were living that value perfectly, what would your behaviour...

Answered: 1 week ago

Question

★★★★★

When a failure-to-extract malfunction is experienced in the AR platform, the barrel must be removed in order to properly replace the extractor

Answered: 1 week ago

Question

★★★★★

X; as an estimate of the population mean Problem 7. (10 POINTS) WEIGHTED SAMPLE MEAN In lectures, we discussed the sample mean X = =i. Let us consider a more general class of estimators: n X = wiXi,...

Answered: 1 week ago

Question

★★★★★

a ) Simplify this distributed load to an equivalent load / s . b ) Solve the reactions at A and B . and draw FBD of equivalent loading? 6 kN/m 9 kN/m 00 1.5 m 2 m 3.5 m

Answered: 1 week ago

Previous Question Next Question

Portfolio Information
Total portfolio Value	$ 1,000,000
Portfolio Type	Balanced

Allocation Scheme
Bond Allocation (%)	50%
Bond Allocation ($)	$ 500,000
Equities Allocation (%)	50%
Equities Allocation ($)	$ 500,000

Issuer Name	CUSIP	Credit Rating	Maturity	Maturity Type	Coupon rate (Yield)	YTM	Payment frequency
Apple Inc.	037833AZ3	AA+	2.52	AT MATURITY	3.061	3.027	S/A

Procter & Gamble Co	742718FL8	AA-	3.24	AT MATURITY	2.976	2.934	S/A

3M Co	88579YAR2	A+	3.01	AT MATURITY	3.295	3.216	S/A

Goldman Sachs Group Inc	38141GVR2	BBB	3.22	AT MATURITY	3.833	3.748	S/A

Bond Benchmarks


Bloomberg US Agg Total Return Value Unhedged USD Index
LBUSTRUU Index

U.S. Aggregate FIGI BBG002F06467 The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency). (Future Ticker: I00001US)	Date	Last Price
	7/29/2022	2162.99
	6/30/2022	2111.4
	5/31/2022	2145.05
	4/29/2022	2131.31
	3/31/2022	2215.38
	2/28/2022	2278.69
	1/31/2022	2304.4
	12/31/2021	2355.14
	11/30/2021	2361.18
	10/29/2021	2354.21
	9/30/2021	2354.86
	8/31/2021	2375.43
	7/30/2021	2379.96
	6/30/2021	2353.64
	5/31/2021	2337.22
	4/30/2021	2329.61
	3/31/2021	2311.35
	2/26/2021	2340.58
	1/29/2021	2374.87
	12/31/2020	2392.02
	11/30/2020	2388.73
	10/30/2020	2365.52
	9/30/2020	2376.13
	8/31/2020	2377.43
	7/31/2020	2396.78
	6/30/2020	2361.51
	5/29/2020	2346.72
	4/30/2020	2335.85
	3/31/2020	2295.05
	2/28/2020	2308.64
	1/31/2020	2267.82
	12/31/2019	2225
	11/29/2019	2226.55
	10/31/2019	2227.69
	9/30/2019	2221
	8/30/2019	2232.89
	7/31/2019	2176.49
	6/28/2019	2171.71
	5/31/2019	2144.78
	4/30/2019	2107.37
	3/29/2019	2106.83
	2/28/2019	2067.14
	1/31/2019	2068.34

Source: Bloomberg LP