Group Tanin Myach is holding onto Portfolio Vix which has 3 high performing shares: Vera, Nadezhda...
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Group Tanin Myach is holding onto Portfolio Vix which has 3 high performing shares: Vera, Nadezhda and Ljuboff. The current market value of each share category in the portfolio is $35,000, $50,300 and $80,000 respectively. The total returns received for the 3 shares for the last 3 months are as follows: Month January February March Vera TR% 11 3 -9 Nadezhda TR % 15 10 27 Ljuboff TR % 6 -16 14 (a) Using the arithmetic mean as a proxy for the expected return, calculate the expected (7 marks) return on Portfolio Vix. (b) Which stock category is the most risky? Mathematically prove your result by calculating the variance and standard deviation of returns for each share. (7 marks) Group Tanin Myach is holding onto Portfolio Vix which has 3 high performing shares: Vera, Nadezhda and Ljuboff. The current market value of each share category in the portfolio is $35,000, $50,300 and $80,000 respectively. The total returns received for the 3 shares for the last 3 months are as follows: Month January February March Vera TR% 11 3 -9 Nadezhda TR % 15 10 27 Ljuboff TR % 6 -16 14 (a) Using the arithmetic mean as a proxy for the expected return, calculate the expected (7 marks) return on Portfolio Vix. (b) Which stock category is the most risky? Mathematically prove your result by calculating the variance and standard deviation of returns for each share. (7 marks)
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Related Book For
Accounting Information Systems basic concepts and current issues
ISBN: 978-0078025334
3rd edition
Authors: Robert Hurt
Posted Date:
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