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Yes you can perform excel Assume you are considering a portfolio containing Asset 1 and Asset 2. Asset 1 will represent 63% of the dollar
Yes you can perform excel
Assume you are considering a portfolio containing Asset 1 and Asset 2. Asset 1 will represent 63% of the dollar value of the portfolio, and Asset 2 will account for the other 37%. The projected returns over the next 6 years, 2021-2026, of these assets are summarized in the following table: a. Calculate the projected portfolio return, fo, for each of the 6 years. b. Calculate the average expected portfolio return, r over the 6-year period. i Data Table c. Caloulate the standard deviation of expected portfolio returns, Sn, over the 6-year period. d. How would you characterize the correlation of returns of the assets 1 and 2? e. Discuss any benefits of diversification achieved through creation of the portfolio. (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) a. The projected portfolio return, rp. for 2021 is %. (Round to two decimal places.) Projected Return The projected portfolio return. fo. for 2022 is %. (Round to two decimal places.) Year Asset 1 Asset 2 2021 -8% 31% The projected portfolio return, , for 2023 Is %. (Round to two decimal places.) 2022 15% 6% 2023 26% -8% The projected portfolio return, ro, for 2024 is %. (Round to two decimal places.) 2024 3% 19% 2025 - 10% 34% The projected portfolio return, rn, for 2025 is % (Round to two decimal places.) 2026 33% -16% The projected portfolio return, fp, for 2026 is % (Round to two decimal places.) b. The average expected portfolio return, ip, over the 6-year period is % (Round to two decimal places.) Print Done C. The standard deviation of expected portfolio returns, Sp. Over the 6-year period is %. (Round to three decimal places.) d. How would you characterize the correlation of returns of the assets 1 and 2? The assets are V correlated. (Select from the drop-down menu.) e. Discuss any benefits of diversification achieved through creation of the portfolio. (Select the best choice below.)Step by Step Solution
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