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You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following data: . You have been
You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following data: You have been told that you can create two portfoliosone consisting of assets A and and the other consisting of assets A and by investing equal proportions in each of the two component assets. a What is the average expected return, for each asset over the year period? b What is the standard deviation, for each asset's expected return? c What is the average expected return, for each of the the portfolios? d How would you characterize the correlations of returns of the two assets making up each of the portfolios identified in part e What is the standard deviation of expected returns, for each portfolio? f Which portfolio do you recommend? Why? a What is the average expected return, for each asset over the year period? Asset A: Round to one decimal place. Asset B: Round to one decimal place. Asset C: Round to one decimal place. b What is the standard deviation, for each asset's expected return? Asset A: Round to two decimal places. Asset B: Round to two decimal places. Asset C: Round to two decimal places. c What is the average expected return, for each of the two portfolios? Portfolio AB: Round to one decimal place. Portfolio AC: Round to one decimal place. Data table Click on the icon here in order to copy its contents of the data table below into a spreadsheet. d How would you characterize the correlations of returns of the assets making up each of the portfolios identified in part
You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following data: You have been told that you can create two portfoliosone consisting of
assets A and and the other consisting of assets A and by investing equal proportions in each of the two component assets.
a What is the average expected return, for each asset over the year period?
b What is the standard deviation, for each asset's expected return?
c What is the average expected return, for each of the the portfolios?
d How would you characterize the correlations of returns of the two assets making up each of the portfolios identified in part
e What is the standard deviation of expected returns, for each portfolio?
f Which portfolio do you recommend? Why?
a What is the average expected return, for each asset over the year period?
Asset A: Round to one decimal place.
Asset B: Round to one decimal place.
Asset C: Round to one decimal place.
b What is the standard deviation, for each asset's expected return?
Asset A: Round to two decimal places.
Asset B: Round to two decimal places.
Asset C: Round to two decimal places.
c What is the average expected return, for each of the two portfolios?
Portfolio AB: Round to one decimal place.
Portfolio AC: Round to one decimal place.
Data table
Click on the icon here in order to copy its contents of the data table below into
a spreadsheet.
d How would you characterize the correlations of returns of the assets making up each of the portfolios identified in part
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