Question
Suppose you are holding the passive S&P 500 Index originally but are considering becoming slightly more active. You are now thinking about two options: a
Suppose you are holding the passive S&P 500 Index originally but are considering becoming slightly more active. You are now thinking about two options: a portfolio with 99% in S&P 500 Index and 1% in Republic Services Inc (RSG), or a portfolio with 99% in S&P 500 Index and 1% in Boeing Co (BA). Suppose your position had been 99% invested in the S&P 500 Index and either 1% in RSG or 1% in BA. Calculate the return of the two resulting portfolios for each month. Estimate the average return and standard deviation of the portfolios. Is the standard deviation of the portfolios higher or lower than that of the S&P 500 Index? Please show your Excel formulas and explain.
| 31-janv-19 | 7.87% | 6.41% | 19.57% |
| 28-fvr-19 | 2.97% | 2.24% | 14.62% |
| 29-mars-19 | 1.79% | 2.96% | -13.31% |
| 30-avr-19 | 3.93% | 3.04% | -0.98% |
| 31-mai-19 | -6.58% | 2.14% | -9.01% |
| 28-juin-19 | 6.89% | 2.87% | 6.56% |
| 31-juil-19 | 1.31% | 2.32% | -6.27% |
| 30-aot-19 | -1.81% | 0.68% | 7.32% |
| 30-sept-19 | 1.72% | -2.57% | 4.50% |
| 31-oct-19 | 2.04% | 1.11% | -10.66% |
| 29-nov-19 | 3.40% | 1.30% | 8.33% |
| 31-dc-19 | 2.86% | 1.56% | -11.04% |
| 31-janv-20 | -0.16% | 6.05% | -2.30% |
| 28-fvr-20 | -8.41% | -5.04% | -12.92% |
| 31-mars-20 | -12.51% | -16.39% | -45.79% |
| 30-avr-20 | 12.68% | 4.37% | -5.44% |
| 29-mai-20 | 4.53% | 9.09% | 3.43% |
| 30-juin-20 | 1.84% | -3.52% | 25.68% |
| 31-juil-20 | 5.51% | 6.34% | -13.80% |
| 31-aot-20 | 7.01% | 6.27% | 8.75% |
| 30-sept-20 | -3.92% | 1.14% | -3.82% |
| 30-oct-20 | -2.77% | -5.55% | -12.63% |
| 30-nov-20 | 10.75% | 9.70% | 45.93% |
| 31-dc-20 | 3.71% | 0.01% | 1.59% |
| 29-janv-21 | -1.11% | -6.00% | -9.28% |
| 26-fvr-21 | 2.61% | -1.58% | 9.18% |
| 31-mars-21 | 4.24% | 11.99% | 20.15% |
| 30-avr-21 | 5.24% | 7.00% | -8.01% |
| 28-mai-21 | 0.55% | 2.71% | 5.42% |
| 30-juin-21 | 2.22% | 1.15% | -3.02% |
| 30-juil-21 | 2.27% | 7.59% | -5.46% |
| 31-aot-21 | 2.90% | 4.87% | -3.08% |
| 30-sept-21 | -4.76% | -2.91% | 0.20% |
| 29-oct-21 | 6.91% | 12.11% | -5.87% |
| 30-nov-21 | -0.83% | -1.74% | -4.43% |
| 31-dc-21 | 4.36% | 5.78% | 1.75% |
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Reforming U.S. Financial Markets Reflections Before And Beyond Dodd Frank
Authors: Randall S. Kroszner, Robert J. Shiller
1st Edition
0262015455, 0262294907, 9780262015455, 9780262294904
