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YES WE CAN USE EXCELLLL Assume you are considering a portfolio containing Asset 1 and Asset 2. Asset 1 will represent 39% of the dollar
YES WE CAN USE EXCELLLL
Assume you are considering a portfolio containing Asset 1 and Asset 2. Asset 1 will represent 39% of the dollar value of the portfolio, and asset 2 will account for the other 61%. Assume that the portfolio is rebalanced at the end of each year. The expected returns over the next 6 years, 2021-2026, for each of these assets are summarized in the following table: a. Calculate the expected portfolio return, lp, for each of the 6 years. b. Calculate the average expected portfolio return, , over the 6-year period. c. Calculate the standard deviation of expected portfolio returns, sp, over the 6-year period. d. Assume that asset 1 represents 61% of the portfolio and asset 2 is 39%. Calculate the average expected return and standard deviation of expected portfolio returns over the 6-year period. e. Compare your answers in part d to the answers from parts b and c. a. The expected portfolio return, ro, for 2021 is %. (Round to two decimal places.) i Data Table in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) Year 2021 2022 2023 2024 2025 2026 Projected Return Asset L Asset M -7% 31% 13% 7% 26% -7% 4% 20% - 10% 34% 33% -16%Step by Step Solution
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