An investor analyses 3 portfolios A, B and C over a 30 year period and generates...
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An investor analyses 3 portfolios A, B and C over a 30 year period and generates the following statistics: Portfolio Average Return A B с 12.1% 9.6% 7.5% VaR (90%) Non-Par -3.9% -2.2% -1.5% Probability (Returns< Average Return) 40% 28% 15% The investor has a required return of 8.5% per annum and a low ability to take risk. Which portfolio(s) is(are) best suited for this investor? Assume a short investment horizon of 5 year. An investor analyses 3 portfolios A, B and C over a 30 year period and generates the following statistics: Portfolio Average Return A B с 12.1% 9.6% 7.5% VaR (90%) Non-Par -3.9% -2.2% -1.5% Probability (Returns< Average Return) 40% 28% 15% The investor has a required return of 8.5% per annum and a low ability to take risk. Which portfolio(s) is(are) best suited for this investor? Assume a short investment horizon of 5 year.
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To determine which portfolios are best suited for the investor with a required return of 85 per annu... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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