Question
Using Excel to solve the following questions! thanks! The original excel is too large, so I can just put part of the excel data here,
Using Excel to solve the following questions! thanks!
The original excel is too large, so I can just put part of the excel data here, could anyone provide the calculation process based on the data I provided here?
introduction: Q3 : Suppose you invested $25 in each of the four assets (so you invested $100 in total) on January 1, 1927. How much money would you have of each asset at the end of the sample period? How much will your total investment be worth at the end of the sample period? (Note: in the excel file, the return for any given month is the return you obtain for an investment made at the end of the previous month. That is, the January return, is the return you would have obtained for an investment that started at the end of December 31 and ended on January 31. We are assuming that investing on December 31 in the evening, or in the morning of January 1, is the same thing.)
4. Now suppose that instead of having invested $25 in each asset, you originally invested $50 in
Asset 1 and $ 50 in Asset 4 (with $0 invested elsewhere). Thereafter, every month you sell everything you own in assets 1 and 4, and then immediately buy again the same assets in equal amounts. Whatistheaverageannualreturnandannualstandarddeviationofyourwholeinvestment? How much will your investment be worth at the end of the sample period?
5. Now suppose that instead of investing $50 in assets 1 and 4, you short $100 of asset 4 (i.e., you borrow $100 of asset 4, agreeing to return the $100 plus the return in asset 4 at the end of the month. Note that this is, moneywise, the same as borrowing some unit, say a share, of asset 4, and agree to return that same unit a month later.) and use those $100 plus $100 of your own money to invest in asset 1. Thereafter, every month you sell whatever you have in asset 1, pay for your short position in asset 4, and proceed to short asset 4 again, and invest in asset 1 again, in a 2-to-1 ratio (for every dollar you short asset 4, you invest two dollars in asset 1). What is the average annual return and annual standard deviation of your net investment (i.e., after youve paid for your short position)? How much will your investment be worth at the end of the sample period?
Date Asset 2 Asset 1 -0.06 Asset 3 4.83 192701 -0.56 Asset 4 0.25 0.26 192702 4.18 -0.1 3.17 192703 0.13 -1.6 -2.67 0.3 192704 0.46 0.43 0.6 0.25 192705 5.44 1.41 4.93 0.3 192706 -2.34 0.47 -1.53 0.26 192707 -1.16 7.26 1.97 192708 -3.23 -0.72 -3.57 2.13 -3.69 -0.71 0.3 0.28 0.21 4.76 -4.33 192709 192710 192711 192712 -4.31 6.58 2.09 0.25 0.21 2.76 -0.31 0.22 0.93 4.25 -1.06 -0.72 192801 192802 192803 192804 192805 -0.68 -1.7 8.81 4.23 1.52 -2.03 -0.26 3.82 -0.69 -1.2 0.25 0.33 0.29 0.22 3.67 -3.46 2.98 0.32 -4.85 -0.06 -3.5 -1.35 -0.47 0.62 6.68 -2.11 192806 192807 192808 192809 192810 192811 192812 0.31 0.32 0.32 0.27 0.41 -2.07 2.33 2.27 2.88 0.99 -2.26 1.33 11.81 -1.81 2.8 -0.6 0.38 0.06 0.36 4.66 -0.85 -3.54 192901 0.34 0.36 -0.34 -1.21 1.68 1.61 -0.39 -0.89 -4.74 0.34 192902 192903 192904 192905 192906 -1 0.36 1.43 -6.39 -5.35 -2.17 0.6 -1.4 -2.76 2.66 0.44 0.52 9.7 4.46 192907 192908 192909 8.18 -3.88 -9.52 1.17 0.06 0.33 0.4 0.35 -5.47 -0.63 Date Asset 2 Asset 1 -0.06 Asset 3 4.83 192701 -0.56 Asset 4 0.25 0.26 192702 4.18 -0.1 3.17 192703 0.13 -1.6 -2.67 0.3 192704 0.46 0.43 0.6 0.25 192705 5.44 1.41 4.93 0.3 192706 -2.34 0.47 -1.53 0.26 192707 -1.16 7.26 1.97 192708 -3.23 -0.72 -3.57 2.13 -3.69 -0.71 0.3 0.28 0.21 4.76 -4.33 192709 192710 192711 192712 -4.31 6.58 2.09 0.25 0.21 2.76 -0.31 0.22 0.93 4.25 -1.06 -0.72 192801 192802 192803 192804 192805 -0.68 -1.7 8.81 4.23 1.52 -2.03 -0.26 3.82 -0.69 -1.2 0.25 0.33 0.29 0.22 3.67 -3.46 2.98 0.32 -4.85 -0.06 -3.5 -1.35 -0.47 0.62 6.68 -2.11 192806 192807 192808 192809 192810 192811 192812 0.31 0.32 0.32 0.27 0.41 -2.07 2.33 2.27 2.88 0.99 -2.26 1.33 11.81 -1.81 2.8 -0.6 0.38 0.06 0.36 4.66 -0.85 -3.54 192901 0.34 0.36 -0.34 -1.21 1.68 1.61 -0.39 -0.89 -4.74 0.34 192902 192903 192904 192905 192906 -1 0.36 1.43 -6.39 -5.35 -2.17 0.6 -1.4 -2.76 2.66 0.44 0.52 9.7 4.46 192907 192908 192909 8.18 -3.88 -9.52 1.17 0.06 0.33 0.4 0.35 -5.47 -0.63Step by Step Solution
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