Homework Answers
Out of the four portfolios given, only portfolio A is efficient in relation to the others. This is based on the mean variance concept which states that if Expected Return from a portfolio is higher and its expected risk ( as defined by standard deviation) is lower than another portfolio, then it is a superior portfolio. Since all the other portfolios do not offer higher return along with lower risk they are classified as inefficient.
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6. Which of these four portfolios above are efficient and which are inefficient? Explain your answer....
Given the information below about the risks and returns of five alternative portfolios, which do not represent efficient portfolios? You can plot them in a graph to help you make your decision....
Given the information below about the risks and returns of five alternative portfolios, which do not represent efficient portfolios? You can plot them in a graph to help you make your decision. Portfolio Expected return Standard deviation A 0.05 0.00 B 0.075 0.12 C 0.075 0.05 D 0.075 0.04 E 0.05 0.05
sorry the question says answer 3 out of the 5. C,D,E please wg uestIon. TOur answer...
sorry the question says answer 3 out of the 5. C,D,E please
wg uestIon. TOur answer or each part should be no longer, than two pages long. (a) How does the security market line differ from the capital market line? Explain your answer. (b) Compare and contrast the minimum variance frontier with the efficient frontier. Can it ever be the case that the minimum variance and efficient frontiers are the same? Explain your answer. (c) Compare and contrast Treynor and...
PROBLEM i Create a column of monthly returns for your 2 stocks and the following 3...
PROBLEM i Create a column of monthly returns for your 2 stocks and the following 3 portfolios. Organize your spreadsheet as follows: a. Date VRSN (#1) Portfolio 1 80% in A 20% in B Portfolio 2 50% in A 50% in B Portfolio 3 20% in A 80% in B MNST (#2) S&P 500 X.x X.x Xx Xx Xx b. Calculate the historical average return and standard deviation for your stocks and the portfolios. Recall you are using historical data,...
Please explain Indicate which distillation gave better separation and explain your answer your graph/data. using Explain...
Please explain
Indicate which distillation gave better separation and explain your answer your graph/data. using Explain why a packed column generally gives better separation than an unpacked one Distillation 120 Chart Area 100 80 60 -Temperature (column -Temperature (no column 40 20 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 Volume (mL) ) ulod Buog
Indicate which distillation gave better separation and explain your answer your graph/data. using Explain why a packed column...
Question 4 (20 marks) (a) You need to invest $10M in two assets: a risk-free asset...
Question 4 (20 marks) (a) You need to invest $10M in two assets: a risk-free asset with an expected return of 5% and a risky asset with an expected return of 12% and a standard deviation of 40%. You face a cap of 30% on the portfolio's standard deviation. What is the maximum expected return you can achieve on your portfolio? (6 marks) (b) Which of the following portfolios can not be on the Markowitz efficient frontier? Explain briefly. Portfolio...
please explain. if you are unsure about your answer please do not answer question. Thank you....
please explain. if you are unsure about your answer
please do not answer question. Thank you.
Question 13 1 pts Which statement is correct? A portfolio that contains at least 30 diverse individual securities will have a beta of 1.0. Any portfolio that is correctly valued will have a beta of 1.0. A portfolio that has a beta of 1.12 will lie to the left of the market portfolio on a security market line graph. A risk-free security plots at...
please select all the correct answers for question 1 and leave an explanation. thanks. a.) Is...
please select all the correct answers for question 1 and leave
an explanation. thanks.
a.) Is the process shown in the plot in control? Check None if in control, otherwise, check the reason for your out of control determination. 1 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 a. None - process is in control b. Data point(s) beyond the control limits c. 2 of 3 points in a...
Problem 6-10 You are evaluating various investment opportunities currently available and you have calculated expected returns...
Problem 6-10 You are evaluating various investment opportunities currently available and you have calculated expected returns and standard deviations for five different well-diversified portfolios of risky assets: Portfolio Expected Return Standard Deviation Q 7.0 % 11.8 % R 9.9 14.8 S 4.2 4.7 T 12.6 16.0 U 6.3 7.2 For each portfolio, calculate the risk premium per unit of risk that you expect to receive ([E(R) - RFR]/σ). Assume that the risk-free rate is 2.0 percent. Round your answers to...
Consider the data in the table below and answer the following questions: Utility Score Portfolio L...
Consider the data in the table below and answer the following questions: Utility Score Portfolio L Utility Score Portfolio M Utility Score Portfolio H Investor Risk Aversion (A) Er) =.07: =.05 E(r)=.09: O= E(r)= 13: o = 2 13-4x2x.22 =.0900 107 _x2x.052 = .0675.09–5x2x. P = 0800 <3<.05º =.0663.00 – £x3x8 =.0750 13-_x3x.2° = 0700 2X4x.052 - 0650.09 -->x4x. 1° = -0700 13x4x.22 - 0500 1. The three risk aversion coefficients in the first column represent investors X, Y and...
This question has two sub-questions. Assume that t-bills generates a return of 3 %. Which of...
This question has two sub-questions. Assume that t-bills generates a return of 3 %. Which of the following risky portfolios is the optimal risky portfolio? Now assume that you wish to have a total expected return on your portfolio of 5 %, how much of your funds should be invested in the optimal risky portfolio, and how much in t-bills, respectively? E(r) σ Portfolio A 10 % 26 % Portfolio B 11 % 31 % Portfolio C 8 % 25...
sorry the question says answer 3 out of the 5. C,D,E please
wg uestIon. TOur answer or each part should be no longer, than two pages long. (a) How does the security market line differ from the capital market line? Explain your answer. (b) Compare and contrast the minimum variance frontier with the efficient frontier. Can it ever be the case that the minimum variance and efficient frontiers are the same? Explain your answer. (c) Compare and contrast Treynor and...
PROBLEM i Create a column of monthly returns for your 2 stocks and the following 3 portfolios. Organize your spreadsheet as follows: a. Date VRSN (#1) Portfolio 1 80% in A 20% in B Portfolio 2 50% in A 50% in B Portfolio 3 20% in A 80% in B MNST (#2) S&P 500 X.x X.x Xx Xx Xx b. Calculate the historical average return and standard deviation for your stocks and the portfolios. Recall you are using historical data,...
Please explain
Indicate which distillation gave better separation and explain your answer your graph/data. using Explain why a packed column generally gives better separation than an unpacked one Distillation 120 Chart Area 100 80 60 -Temperature (column -Temperature (no column 40 20 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 Volume (mL) ) ulod Buog
Indicate which distillation gave better separation and explain your answer your graph/data. using Explain why a packed column...
Question 4 (20 marks) (a) You need to invest $10M in two assets: a risk-free asset with an expected return of 5% and a risky asset with an expected return of 12% and a standard deviation of 40%. You face a cap of 30% on the portfolio's standard deviation. What is the maximum expected return you can achieve on your portfolio? (6 marks) (b) Which of the following portfolios can not be on the Markowitz efficient frontier? Explain briefly. Portfolio...
please explain. if you are unsure about your answer
please do not answer question. Thank you.
Question 13 1 pts Which statement is correct? A portfolio that contains at least 30 diverse individual securities will have a beta of 1.0. Any portfolio that is correctly valued will have a beta of 1.0. A portfolio that has a beta of 1.12 will lie to the left of the market portfolio on a security market line graph. A risk-free security plots at...
please select all the correct answers for question 1 and leave
an explanation. thanks.
a.) Is the process shown in the plot in control? Check None if in control, otherwise, check the reason for your out of control determination. 1 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 a. None - process is in control b. Data point(s) beyond the control limits c. 2 of 3 points in a...
Consider the data in the table below and answer the following questions: Utility Score Portfolio L Utility Score Portfolio M Utility Score Portfolio H Investor Risk Aversion (A) Er) =.07: =.05 E(r)=.09: O= E(r)= 13: o = 2 13-4x2x.22 =.0900 107 _x2x.052 = .0675.09–5x2x. P = 0800 <3<.05º =.0663.00 – £x3x8 =.0750 13-_x3x.2° = 0700 2X4x.052 - 0650.09 -->x4x. 1° = -0700 13x4x.22 - 0500 1. The three risk aversion coefficients in the first column represent investors X, Y and...
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