Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TThe answers are there, i just need to know how to solve for them WITHOUT EXCEL please Suppose you are creating a portfolio of two

image text in transcribedTThe answers are there, i just need to know how to solve for them WITHOUT EXCEL please

Suppose you are creating a portfolio of two assets (X and Y). They are equally held. The extected return and standard deviation of each asset is shown in the accompanying table. Assets Expected Return (%) SD (%) Weight X 10.1 16.8 0.5 Y 16.8 27.5 0.5 (a) What is the portfolio expected return? E(Rp)=0.5*0.101+0.5*0.168=13.45% Hint: E(Rp) = wiXE(R1) + w2XE(R2) (b) What is the SD of portfolio returns (Op) if the Px,y is 1? 22.15% Hint: o = wo + wo} + 2w1W2Px,y0xOy (c) What is the SD of portfolio returns (Op) if the Px,y is 0.5? 19.37 (d) What is the SD of portfolio returns (Op) if the Pxy is -0.5? 12.01

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Healthcare Finance An Introduction To Accounting And Financial Management

Authors: Louis Gapenski PhD

3rd Edition

1567932320, 978-1567932324

More Books

Students also viewed these Finance questions