Question: Assignment 3: Portfolio revisions using swaps contracts Please write your name here- Portfolio A has $65 million in stock and $45 million in bonds. Portfolio

Assignment 3: Portfolio revisions using swaps contracts Please write your name here- Portfolio A has $65 million in stock and $45 million in bonds. Portfolio B has $40 million in stock and $ 70 million in bonds. Portfolio Manager A makes a swap with portfolio manager B to exchange stock for bonds with a notional principal of $25 million. Year-end returns are as follows. Stock return Bond return 6% A. Show the asset allocation for each portfolio before the swap here; Identify as A or B. Portfolio B Portfolio A Weights Dollars Weights Dollars Stock Bonds Total B. Show the asset allocation for each portfolio after the swap here; Identify as A or B. Portfolio B Portfolio A Weights Dollars Dollars Weights Stock Bonds Total C. Show the year-end results without the swap for portfolio A here. Portfolio A Portfolio B Return Return= Which portfolio performed better? D. Show the year-end results for portfolio A with the swap here. Portfolio A Portfolio B Return Returns Which portfolio performed better? E. Does portfolio manager A gain or lose from this swap and show the dollar amount here. Show the same results for the year-end values for portfolio B
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