Question
U=7 Compute the expected return on a portfolio in which you invest (U/2)%+60% of your wealth into a mutual fund (a company investing into a
U=7
Compute the expected return on a portfolio in which you invest (U/2)%+60% of your wealth into a mutual fund (a company investing into a diversified portfolio consisting mostly of stocks) and 40%-(U/2)% into a money market fund; and also calculate the probability that the return will be negative (i.e., below 0%.) (so I want to calculate the expected return and risk of loss on that investment portfolio). Also, compute the likelihood that the return on the portfolio will be greater than 30%.
PLEASE SHOW YOUR WORK, EQUATIONS, NO EXCEL. THANK YOU
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