Investment Portfolio and Risk diversification. Analyze the situations that arise in each of the problems and calculate
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Investment Portfolio and Risk diversification.
Analyze the situations that arise in each of the problems and calculate the value or values ?? required for each of these.
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Problem 2: List and discuss at least two strategies that can be used to achieve a diversified investment portfolio. Problem 3: Use the data from the following four actions to answer the questions below: a. b. C. stock performance Ao TLS DI PFE WMT 20x5 12.00% 4.50% 5.80% 11.30% 20x6 13.30% 5.30% 5.70% 9.00% TLS - DI TLS - PFE TLS - WMT 20x7 10.20% 3.10% 5.90% 13.90% 20x8 9.30% 2.70% 4.50% 14.80% 20x9 8.60% 1.90% 6.30% 15.00% Classify the correlations between each pair of stocks as positive correlation (CP), perfectly positive correlation (CPP), negative correlation (CN), perfectly negative correlation (CPN), and no correlation (SC): DI-PFE DI - WMT PFE - WMT Which three of the four stocks would you combine to build a diversified portfolio and why? It starts from the premise that there is an investment distribution in equal parts (33.3%) among the selected shares. Calculate the retum, risk and coefficient of variation for the portfolio of three stocks selected in the previous exercise. It starts from the premise that there is an investment distribution in equal parts (33.3%) among the selected shares. Problem 2: List and discuss at least two strategies that can be used to achieve a diversified investment portfolio. Problem 3: Use the data from the following four actions to answer the questions below: a. b. C. stock performance Ao TLS DI PFE WMT 20x5 12.00% 4.50% 5.80% 11.30% 20x6 13.30% 5.30% 5.70% 9.00% TLS - DI TLS - PFE TLS - WMT 20x7 10.20% 3.10% 5.90% 13.90% 20x8 9.30% 2.70% 4.50% 14.80% 20x9 8.60% 1.90% 6.30% 15.00% Classify the correlations between each pair of stocks as positive correlation (CP), perfectly positive correlation (CPP), negative correlation (CN), perfectly negative correlation (CPN), and no correlation (SC): DI-PFE DI - WMT PFE - WMT Which three of the four stocks would you combine to build a diversified portfolio and why? It starts from the premise that there is an investment distribution in equal parts (33.3%) among the selected shares. Calculate the retum, risk and coefficient of variation for the portfolio of three stocks selected in the previous exercise. It starts from the premise that there is an investment distribution in equal parts (33.3%) among the selected shares.
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Answer rating: 100% (QA)
Problem 2 To achieve a diversified investment portfolio two strategies that can be used are 1 Asset Allocation This strategy involves dividing investm... View the full answer
Related Book For
Accounting Information Systems
ISBN: 978-0133428537
13th edition
Authors: Marshall B. Romney, Paul J. Steinbart
Posted Date:
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