Assuming you invested $100,000 in a portfolio of investments allocated as below. Use the following information...
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Assuming you invested $100,000 in a portfolio of investments allocated as below. Use the following information to answer the following questions INPUT (PORTFOLIO) FREE CALCULATION AREA (use this area to input and calculate your work - do not insert rows or columns) Amount Return Risk T-Bills (Risk Free) $ 10.000 1,75% 0,00% Bonds $ 45.000 8,00% 12,00% Stocks $ 45.000 32,00% 40,00% Correlation Bonds/Stocks 0,4500 Stock Beta 1,900X INPUT (MARKET BENCHMARK) Return Risk S&P 500 Index 14,00% 22,00% OUTPUT: Combined Average Total Portfolio Return % Combined Average Total Portfolio Return Amount $ Combined Average Risky Portfolio Return % Combined Standard Deviation Risky Portfolio Return % Combined Average Risky Portfolio Return Amount $ Sharpe Ratio of the Risky Portfolio CAPM for the stock portfolio Treynor Ratio for the stock portfolio Jensen's Alpha for the stock portfolio Assuming you invested $100,000 in a portfolio of investments allocated as below. Use the following information to answer the following questions INPUT (PORTFOLIO) FREE CALCULATION AREA (use this area to input and calculate your work - do not insert rows or columns) Amount Return Risk T-Bills (Risk Free) $ 10.000 1,75% 0,00% Bonds $ 45.000 8,00% 12,00% Stocks $ 45.000 32,00% 40,00% Correlation Bonds/Stocks 0,4500 Stock Beta 1,900X INPUT (MARKET BENCHMARK) Return Risk S&P 500 Index 14,00% 22,00% OUTPUT: Combined Average Total Portfolio Return % Combined Average Total Portfolio Return Amount $ Combined Average Risky Portfolio Return % Combined Standard Deviation Risky Portfolio Return % Combined Average Risky Portfolio Return Amount $ Sharpe Ratio of the Risky Portfolio CAPM for the stock portfolio Treynor Ratio for the stock portfolio Jensen's Alpha for the stock portfolio
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To calculate the required outputs based on the information provided we will perform the following calculations 1 Calculate the Weighted Average Return ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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