Question: 1. Using the annual return data provided in Exhibit 1 of the case for Lyxor ChinaH and Lyxor MSIndia, calculate their mean returns and standard

1. Using the annual return data provided in Exhibit 1 of the case for Lyxor ChinaH and Lyxor MSIndia, calculate their mean returns and standard deviations. With these numbers, calculate the standard deviation and return for Susie's entire portfolio. (12 marks)

2. After adding Lyxor USDJIA, what is the portfolio's standard deviation and return? (6 marks)

3. Based on your data analysis, should Susie diversify her portfolio or remain invested in China and India only? Why? (8 marks)

4. Calculate the betas of Lyxor ChinaH, Lyxor MSIndia, and Lyxor USDJIA (To calculate the covariance with the market proxy, use the Lyxor World return data shown in Exhibit 1 as the market proxy). Assuming a risk-free rate of 2.5 per cent and a market risk premium of 5.5 per cent, what are the required returns for each of the three ETFs? (12 marks)

Hints:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

I need to use Excel to do most of these calculations. Please HELP 1 . Using the annual return data provided in Exhibit 1 of the case for Lyxor ChinaH and Lyxor MSIndia, calculate their mean returns,...

QUESTION ONE (40 Marks) On a Saturday morning in late September 2015, Mwinenkoma Ladime-Bayornaa sat over her breakfast, which was rapidly turning cold, and reflected on the performance of her...

60 40 401 30 Assets Existing New Portfolio Portfolio ALUWORK AGA 30 Lyxor Required 1. Using the annual return data provided in Exhibit 1 of the case for ALUWORKS and AGA, calculate their mean...

Using the annual return data provided in Exhibit I of the case for Lyxor Chinali and Lyzor MSIndia , Calculate their mean returns . standard deviations . covariance and correlation . With these...

EXHIBIT 1: ANNUAL RETURNS (%) Year ALUWORKS AGA Lyxor USDJIA Lyxor World 2.00 5.86 5.56 769 2010 425 22.40 6.11 5.79 2011 -29.40 27.07 7.94 -3.28 2012 13.23 0.60 18.29 20.75 2013 8.86 -6.14 17.09...

OnaSaturdaymorninginlateSeptember 2015,Desiree Mofakyesatoverherbreakfast,whichwasrapidlyturning cold,and reflectedontheperformanceofher personalinvestmentportfoliooverthe past sevenyears.She...

1.Using the annual return data provided in Exhibit 1 of the case for ALUWORKS and AGA, calculate their mean returns, standard deviations, covariance, and correlation. With these numbers, calculate...

Using the annual return data provided in Exhibit I of the case for IVxor Chinall and IVxor MISIndia , calculate their mean returns , Standard deviations , covariance and correlation . With these...

Desiree allocated funds in equity markets. Aluworks and AGA in the ratio of 60% to 40% respectively. Aluworks was invested in the equity markets of SA and AGA in public equity markets of Ghana. She...

EXHIBIT 1: ANNUAL RETURNS (\%) EXHIBIT 2: PORTFOLIO WEIGHTS (\%) 1. Using the annual return data in Exhibit 1, calculate the average return and standard deviation of individual stocks in Susie's...

In what other settings do you see a step being useful? Why?

Question 2: True/False questions 1. A-B-CA-C-B type reactions area catalyzed by transferases 2. Enzyme is not consumed in the reactio 3. Non-Competitive inhibitors change the Km but Vmax remains the...

Larkspur Corporation had sales of $ 3 , 2 2 0 , 0 0 0 for the year ended December 3 1 , 2 0 2 7 . The unit selling price was $ 1 4 . In making the sales, the company incurred the following costs and...

The force constant of a massless spring is 2 5 . 0 N / m . A mass of 0 . 4 5 kg is oscillating in simple harmonic motion at the end of the spring

What are the kinds of power exercised in your organization or school?

Search the Internet for the term strategic business units. Look for the ways that various organizations are utilizing such units to enhance their management.

If you were asked to advise a young college graduate who has accepted a staff position as assistant to a factory manager, what suggestions would you make?