Question
Problem 1 Consider the following two potential investments Nexit and Rexit. You plan to invest 8,000 KD in investment Nexit and 12,000 KD in investment
Problem 1
Consider the following two potential investments Nexit and Rexit. You plan to invest 8,000 KD in investment Nexit and 12,000 KD in investment Rexit.
| Date | Return Nexit | Return Rexit |
| 2016 | 0.03 | -0.04 |
| 2017 | -0.05 | 0.08 |
| 2018 | 0.08 | 0.07 |
| 2019 | 0.12 | 0.13 |
a. Build a portfolio consisting of Nexit and Rexit based on the information above.
b. Calculate the average return of the portfolio.
c. Calculate the risk of the portfolio.
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Financial Crimes
Authors: Maximilian Edelbacher, Peter Kratcoski, Michael Theil
1st Edition
0367866528, 978-0367866525
