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We need for answer questions 1, 2 ,3, 4 in the yellow to the right. I am having trouble. 49 .00 1.0 * F 1
We need for answer questions 1, 2 ,3, 4 in the yellow to the right. I am having trouble.
49 .00 1.0 * F 1 X 0 1 1 1 8.0.74% Excel File Edit View Insert Insert Format Tools Data Window Window Help 84% Wed 4:13 PM a FIN3312-summer2020-Ch567-stu Q Search Sheet Home Insert Page Layout Formulas Data Review View 9+ Share Cut Arial 10 A A Auto Sum Wrap Text General X Copy Fill Paste B I U A Merge & Center $ % ) +.0 Conditional Format Cell .00 Insert Format Delete Format Sort & Formatting as Table Styles Clear Filter Y14 fx A B D E G H J K M N O P Q R S T U V w 1 US REIT Equity mutual 2 Fund fund 3 E[r] 0.075 0.100 0.015 Correlations 4 0.180 0.250 Bond Stock 5 reward-to- 6 Weight in Weight in E[Rord oor) olport) risk ratio Bond 7 US Fund REIT Fund Stock 0.15 8 0.00% 100.00% 9 5.00% 95.00% 10 10 10.00% 90.00% 1 1) Code the necessary formulas in columns G, H, I, and K 14 11 13.73% 86.27% 12 12 19.26% 2) Create a graph of the frontier with your set of risky portfolios 13 21.44% 78.56% 1 14 25 go 25.18% 74.82% 1 3) Identify which one in the list is the optimal portfolio of the US Equity Fund and the REIT Fund ---> 15 30.01% 69.99% 20 Explain why you selected the one you did: 16 37.94% 62.06% 1 WW WADY 17 17 46.01% 53.99% 18 18 51.00% 49.00% 4) Suppose you do an investment process analysis and determine that you need an expected return of 19 18 57.49% 42.51% 6.35% to meet your objective. 20 20 02.127 69.72% 30.28% 34 21 75.84% 12.04% 24.16% a) Find the combination of the optimal risky portfolio and Treasuries you would use. Show ALL work! Round to xx.yy% 22 82.53% 17.47% 22 20 23 89.82% 10.18% 24 94.96% 5.04% 25 100.00% 0.00% 26 27 b) Determine the weights in all 3 assets. Round to xx.yy%. Show ALL work! 28 29 30 31 32 33 34 c) If you have $10,000 to invest, determine the amount you would allocate to each asset. 35 36 37 38 5) What CAL portfolio would you use instead of the frontier portfolio on row 24 ... 94.96% in US and 5.04% in REIT? (8 points) 39 40 41 bookch6 Sheet1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 + Ready B + 100% 49 .00 1.0 * F 1 X 0 1 1 1 8.0.74% Excel File Edit View Insert Insert Format Tools Data Window Window Help 84% Wed 4:13 PM a FIN3312-summer2020-Ch567-stu Q Search Sheet Home Insert Page Layout Formulas Data Review View 9+ Share Cut Arial 10 A A Auto Sum Wrap Text General X Copy Fill Paste B I U A Merge & Center $ % ) +.0 Conditional Format Cell .00 Insert Format Delete Format Sort & Formatting as Table Styles Clear Filter Y14 fx A B D E G H J K M N O P Q R S T U V w 1 US REIT Equity mutual 2 Fund fund 3 E[r] 0.075 0.100 0.015 Correlations 4 0.180 0.250 Bond Stock 5 reward-to- 6 Weight in Weight in E[Rord oor) olport) risk ratio Bond 7 US Fund REIT Fund Stock 0.15 8 0.00% 100.00% 9 5.00% 95.00% 10 10 10.00% 90.00% 1 1) Code the necessary formulas in columns G, H, I, and K 14 11 13.73% 86.27% 12 12 19.26% 2) Create a graph of the frontier with your set of risky portfolios 13 21.44% 78.56% 1 14 25 go 25.18% 74.82% 1 3) Identify which one in the list is the optimal portfolio of the US Equity Fund and the REIT Fund ---> 15 30.01% 69.99% 20 Explain why you selected the one you did: 16 37.94% 62.06% 1 WW WADY 17 17 46.01% 53.99% 18 18 51.00% 49.00% 4) Suppose you do an investment process analysis and determine that you need an expected return of 19 18 57.49% 42.51% 6.35% to meet your objective. 20 20 02.127 69.72% 30.28% 34 21 75.84% 12.04% 24.16% a) Find the combination of the optimal risky portfolio and Treasuries you would use. Show ALL work! Round to xx.yy% 22 82.53% 17.47% 22 20 23 89.82% 10.18% 24 94.96% 5.04% 25 100.00% 0.00% 26 27 b) Determine the weights in all 3 assets. Round to xx.yy%. Show ALL work! 28 29 30 31 32 33 34 c) If you have $10,000 to invest, determine the amount you would allocate to each asset. 35 36 37 38 5) What CAL portfolio would you use instead of the frontier portfolio on row 24 ... 94.96% in US and 5.04% in REIT? (8 points) 39 40 41 bookch6 Sheet1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 + Ready B + 100%Step by Step Solution
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