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Q#2 Please find the following data on three different assets,A,B,C and Markets.Accordingly,calculate the required values and write down those in the specified spaces Expected return
Q#2 | Please find the following data on three different assets,A,B,C and Markets.Accordingly,calculate the required values and write down those in the specified spaces | Expected return on A | |||||||||
Std Deviation of A's return | |||||||||||
Economy | Probability | Return of Asset A | Return of Asset B | Return of Asset C | CV of A's return | ||||||
Boom | 20% | 20% | 25% | 7% | Required return on A | ||||||
AVG | 50% | 10% | 22% | 9% | Is A overvalued? (Y/N) | Write Y or, N | |||||
BUST | 30% | 8% | 15% | 12% | Expected return on B | ||||||
Std Deviation of B's return | |||||||||||
Invested $M | RISK (beta) | CV of B's return | |||||||||
Asset A | $20.00 | 1.500 | Required return on B | ||||||||
Asset B | $30.00 | 1.250 | Is B overvalued? (Y/N) | Write Y or, N | |||||||
Asset C | $40.00 | -0.625 | Expected return on C | ||||||||
Std Deviation of C's return | |||||||||||
Risk Free Return | 6.0% | CV of C's return | |||||||||
Expected Market Return | 7.6% | Required return on C | |||||||||
Is C overvalued? (Y/N) | Write Y or, N | ||||||||||
Correlation Coeff (A,B) | |||||||||||
Correlation Coeff (B,C) | |||||||||||
Correlation Coeff (C,A) | |||||||||||
3-asset portfoilo return | |||||||||||
3-asset portfoilo risk (sigma) | |||||||||||
3-asset portfoilo risk (beta) | |||||||||||
3-asset portfoilo CV | |||||||||||
Required return on portfolio | |||||||||||
Portfoilo Sharpe ratio | |||||||||||
Portfoilo Treynor ratio |
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