Calculate the weights of VBTLX and VFIAX that achieve a portfolio allocation that represents an "optimal risky portfolio" on the efficient frontier, as of the end of December 2015.  Given these weights, how much of the $5 million would you invest in VBTLX?

 

  

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A 1 2 Date 3 Jan-12 4 Feb-12 5 Mar-12 6 Apr-12 7 May-12 8 Jun-12 9 Jul-12 10 Aug-12 11 Sep-12 12 Oct-12 13 Nov-12 14 Dec-12 15 Jan-13 16 Feb-13 17 Mar-13 18 Apr-13 19 May-13 20 Jun-13 21 Jul-13 22 Aug-13 23 Sep-13 24 Oct-13 25 Nov-13 26 Dec-13 27 Jan-14 28 Feb-14 29 Mar-14 30 Apr-14 31 May-14 32 Jun-14 33 Jul-14 34 Aug-14 35 Sep-14 36 Oct-14 37 Nov-14 38 Dec-14 39 Jan-15 40 Feb-15 41 Mar-15 B VBTLX 0.88 -0.04 -0.57 1.15 0.96 0.04 1.39 0.04 0.12 0.12 0.2 -0.19 -0.7 0.55 0.09 0.92 -1.7 -1.64 0.21 -0.63 0.97 0.79 -0.34 -0.64 1.55 0.49 -0.14 0.78 1.06 0.12 -0.25 1.14 -0.71 0.95 0.66 0.1 2.32 -1.07 0.42 с VFIAX 4.47 4.32 3.29 -0.63 -6.01 4.12 1.38 2.25 2.58 -1.85 0.58 0.91 5.18 1.35 3.75 1.92 2.33 -1.35 5.09 -2.9 3.13 4.59 3.04 2.53 -3.46 4.57 0.84 0.74 2.34 2.06 -1.38 4 -1.4 2.43 2.69 -0.26 -3 5.74 -1.59 D E F G Converting into decimal return VBTLX VFIAX 0.0088 0.0447 -0.0004 0.0432 -0.0057 0.0329 0.0115 -0.0063 0.0096 -0.0601 0.0004 0.0412 0.0139 0.0138 0.0004 0.0225 0.0012 0.0258 0.0012 -0.0185 0.002 0.0058 -0.0019 0.0091 -0.007 0.0518 0.0055 0.0135 0.0009 0.0375 0.0092 0.0192 -0.017 0.0233 -0.0164 -0.0135 0.0021 0.0509 -0.0063 -0.029 0.0097 0.0313 0.0079 0.0459 -0.0034 0.0304 -0.0064 0.0253 0.0155 -0.0346 0.0049 0.0457 -0.0014 0.0084 0.0078 0.0074 0.0106 0.0234 0.0012 0.0206 -0.0025 -0.0138 0.0114 -0.0071 0.0095 0.0066 0.001 0.0232 -0.0107 0.0042 Date Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 0.04 -0.014 0.0243 0.0269 -0.0026 -0.03 0.0574 -0.0159 A 1 2 Date 3 Jan-12 4 Feb-12 5 Mar-12 6 Apr-12 7 May-12 8 Jun-12 9 Jul-12 10 Aug-12 11 Sep-12 12 Oct-12 13 Nov-12 14 Dec-12 15 Jan-13 16 Feb-13 17 Mar-13 18 Apr-13 19 May-13 20 Jun-13 21 Jul-13 22 Aug-13 23 Sep-13 24 Oct-13 25 Nov-13 26 Dec-13 27 Jan-14 28 Feb-14 29 Mar-14 30 Apr-14 31 May-14 32 Jun-14 33 Jul-14 34 Aug-14 35 Sep-14 36 Oct-14 37 Nov-14 38 Dec-14 39 Jan-15 40 Feb-15 41 Mar-15 B VBTLX 0.88 -0.04 -0.57 1.15 0.96 0.04 1.39 0.04 0.12 0.12 0.2 -0.19 -0.7 0.55 0.09 0.92 -1.7 -1.64 0.21 -0.63 0.97 0.79 -0.34 -0.64 1.55 0.49 -0.14 0.78 1.06 0.12 -0.25 1.14 -0.71 0.95 0.66 0.1 2.32 -1.07 0.42 с VFIAX 4.47 4.32 3.29 -0.63 -6.01 4.12 1.38 2.25 2.58 -1.85 0.58 0.91 5.18 1.35 3.75 1.92 2.33 -1.35 5.09 -2.9 3.13 4.59 3.04 2.53 -3.46 4.57 0.84 0.74 2.34 2.06 -1.38 4 -1.4 2.43 2.69 -0.26 -3 5.74 -1.59 D E F G Converting into decimal return VBTLX VFIAX 0.0088 0.0447 -0.0004 0.0432 -0.0057 0.0329 0.0115 -0.0063 0.0096 -0.0601 0.0004 0.0412 0.0139 0.0138 0.0004 0.0225 0.0012 0.0258 0.0012 -0.0185 0.002 0.0058 -0.0019 0.0091 -0.007 0.0518 0.0055 0.0135 0.0009 0.0375 0.0092 0.0192 -0.017 0.0233 -0.0164 -0.0135 0.0021 0.0509 -0.0063 -0.029 0.0097 0.0313 0.0079 0.0459 -0.0034 0.0304 -0.0064 0.0253 0.0155 -0.0346 0.0049 0.0457 -0.0014 0.0084 0.0078 0.0074 0.0106 0.0234 0.0012 0.0206 -0.0025 -0.0138 0.0114 -0.0071 0.0095 0.0066 0.001 0.0232 -0.0107 0.0042 Date Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 0.04 -0.014 0.0243 0.0269 -0.0026 -0.03 0.0574 -0.0159

Answer rating: 100% (QA)

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