ZuoTi.Pro
Question

(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Projected Returrn Asset M 19% 19% 17% 14% 11% 11% Asset L Year 2018 2019 2020 2021 2022 2023 15% 15% 16% 18% 18% 18%

Ass ma you ara cons dann g a o olo containing to asse s and M Assat L rapresent 44% oft a dolar value a. Calculare the projected portfolio return, . or ach of the 6 ysars b. Calculate the average expected portfoliv return,p over the 5-year period c. Calculate the standard deviation or expected portfolio returns, s ·over the 6-year period. d. How would you characterize the correlation o retums of the two aszets L and M? a. Dscuss any banafits of diversification achiavad through craation of the portfalio the po olo and ass M w account or the Other 6 0 The pro e ad ratu ns over the na 6 years 01 02 10r aach the98 assats ara summa za n ta follo ng table a. The projected portfolio return, ro. for 2018 is (Round to two decimal places.) prejactad portin return o for 2019 is L% (Roundto two decima places Tre prolectad portiolo returns tor 2020 is L%Round 10 two decimal places》 The projected portfolio returns for 2021 is L% Roundto two decimal places Tha projactad portiolio raturn ,far 2022 is The projected portfolio return. .p-for 2023 is | | %. Round iu two decimal places. } b. The average expected portfolio return , over the 6 year period is 1 %. (Round to two decimal places.) Raund to two decimal placas) c. The standerd devistion of expeted pitfolio returme, sp over the 6-yeer period is Round to three decimal places) d. How would you characterize the correlation of returns of the two assets L ฮnd M? The assets are elted Select from the drop-down menu.) e. Discuss any beefils of diversification achieved through creatiun of the portfuli. (Select the best choice below. OA. By combining thesc two nagatively comclated assets, the averal portiolio rick is climinated O B. By combining these two pos vely comelated assats, the overal porttolo risk is raduced O C. By combining these two negstively correlsted sssets, the overal portfolio risk is reduced D. By combining these two negatively correlated assets, the overal portiio risk is increased.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE IMAGE.A NY DOUBTS, FEEL FREE TO ASK.HAPPY TO HELP YOU. THUMBS UP PLEASE. THANK YOU

Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Cente

0 0
Add a comment
Know the answer?
Add Answer to:
(Click on the icon located on the top-right corner of the data table below in order...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Assume you are considering a portfolio containing two​ assets, L and M. Asset L will represent...

    Assume you are considering a portfolio containing two​ assets, L and M. Asset L will represent 39 % of the dollar value of the​ portfolio, and asset M will account for the other 61 %. The projected returns over the next 6​ years, 2018-2023​, for each of these assets are summarized in the following​ table: LOADING.... a. Calculate the projected portfolio​ return, r over p​, for each of the 6 years. b. Calculate the average expected portfolio​ return, r over...

  • Assume you are considering a portfolio containing Asset 1 and Asset 2. Asset 1 will represent...

    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 t6 years, 2021-2026, for each of these assets are summarized in the following table: a. Calculate the projected portfolio retur, fp, for each of the 6 years. Data Table - X b. Calculate the average expected portfolio return, fp, over the 6-year period....

  • Data Table (Click on the icon located on the top-right corner of the data table below...

    Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Security Beta 1.37 0.77 -0.87 Print Done Assume the betas for securities A, B, and C are as shown here: EE a. Calculate the change in return for each security if the market experiences an increase in its rate of return of 12.5% over the next period b. Calculate the change in retum for ach...

  • Assume you are considering a portfolio containing two assets, L and M Asset L will represent...

    Assume you are considering a portfolio containing two assets, L and M Asset L will represent 37% o the dollar value of the portfolio and asset M will account for the other 63%. The pro ected returns over he next 6 years, 2018-2023, for each of these assets are summarized in the following table: a. Calculate the projected portfollo return, rp for each of the 6 years. b. Calculate the average expected portolio return, rp, over the 6-year period. c....

  • Assume you are considering a portfolio containing two assets, L and M. Asset L will represent...

    Assume you are considering a portfolio containing two assets, L and M. Asset L will represent 36% of the dollar value of the portfolio, and asset M will account for the other 64%. The projected returns over the next six years, 2018–2023, for each of these assets are summarized in the following table. *huge thumbs up for correct answers* Projected Return (%) Year Asset L Asset M 2018 15% 21% 2019 14% 17% 2020 16% 16% 2021 16% 14% 2022...

  • Data Table (Click on the icon located on the top-right corner of the data table below...

    Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Closing Stock Price Stock August 15, 2016 $45.37 $36.82 $20.72 $58.85 $82.77 $31.04 August 15, 2013 $40.95 $35.77 $22.11 $60.25 $69.15 $29.36 0.73 August 15, 1987 $50.69 $10.38 $7.84 $25.32 $45.51 31.13 1.00 Divisor 0.68 Note: The number of shares of each stock outstanding has been the same on these dates. Therefore, the closing stock...

  • Data Table (Click on the icon located on the top-right corner of the data table below...

    Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Closing Stock Price Stock August 15, 2016 $46.22 $36.33 $20.13 $59.57 $82.51 $32.54 August 15, 2013 $39.24 $35.73 $22.33 $60.93 $69.97 $29.27 0.72 August 15, 1987 $49.45 $9.48 $6.58 $25.21 $44.73 31.43 1.00 Divisor 0.70 Note: The number of shares of each stock outstanding has been the same on these dates. Therefore, the closing stock...

  • (Click on the icon located on the top-right corner of the data table below in order...

    (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Stock Price $49.99 $51.16 $49.46 $51.93 $52.52 Dividend Jan 1 Mar 31 Jun 30 Sep 30 Dec 31 $0.59 $0.59 $0.76 $0.76 Using the data from the following table, EEB, calculate the return for investing in this stock from January 1 to December 31. Prices are after the dividend has been paid. The return from January 1...

  • Click on the Icon located on the top-right corner of the data table in order to copy its contents...

    Click on the Icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Yearly returns from 1929-1940 for the S&P 500, small stocks, corporate bonds, world portfolio, Treasury bills, and inflation (as measured by the CPI). S&P 500 Year 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 Small Stocks Corp BondsWorld Portfolio Treasury Bills CPI 0.08906 0.25256 0.43861 0.08854 0.52880 0.02341 0.47221 0.32796 0.35258 0.33204 0.00914 0.10078...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT