Question: Paste fx The Application of Markowitz Model to International Diversification The Application of Markowitz Model to International Diversification 3 Inputs 1 Forecasts of Risk Premiums

Paste fx The Application of Markowitz Model to International Diversification The Risk Premiums Correlation with the Standard Deviation US Averages Forecast 5 Count

Paste fx The Application of Markowitz Model to International Diversification The Application of Markowitz Model to International Diversification 3 Inputs 1 Forecasts of Risk Premiums Correlation with the Standard Deviation US Averages Forecast 5 Count 1991-2000 2001-2005 1991-2000 2001-2005 1991-2000 2001-2005 2006 0.1295 1 1 0.1108 -0.0148 0.060 US 0.1495 0.1466 0.1493 0.64 0.83 0.0536 0.0094 0.053 0.1741 0.2008 0.54 0.83 0.0837 0.0247 0.070 8 France 0.2270 0.53 0.85 0.0473 0.0209 0.080 Germany 0.1538 0.52 0.81 0.0468 0.1225 0.058 10 Australia 1808 0.1617 0.411 0.43 -0.0177 0.0398 0.045 0.2432 11 Japan 0.1878 0.1687 0.1727 072 0.79 0.0727 0.1009 0.059 12 Canada 14 Inputs 2 The Covariance Matrix Portfolio 16 Weights 1.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 US UK France Germany Australia Japan Canada 0,0224 0.0184 0.0250 0.0288 0.0195 0.0121 0.0205 18 1.0000 US 0.0184 0.0223 0.0275 0.0299 0.0204 0.0124 0.0206 19 0.0000 UK 0.0000 France 0.0250 0.0275 0.0403 0.0438 0.0259 0.0177 0.0273 20 0.0000 Germany 0.0288 0.0299 0.0438 0.0515 0.0301 0.0183 0.0305 21 0.0195 0.0204 0.0259 0.0301 0.0261 0.0147 0.0234 22 0.0000 Australia 0.0121 0.0124 0.0177 0.0183 0.0147 0.0353 0.0158 0.0000 Japan 23 0.0000 Canada. 0.0205 0.0206 0.0273 0.0305 0.0234 0.0158 0.0298 25 1.0000 0.0224 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0600 Er P-r f 0.1495 SD P 0.4013 Sharpe P 28 29 A18 is set arbitrarily to 1 while A19 to A24 are set to 0 30 Cell A18 A24 Paste fx The Application of Markowitz Model to International Diversification The Application of Markowitz Model to International Diversification 3 Inputs 1 Forecasts of Risk Premiums Correlation with the Standard Deviation US Averages Forecast 5 Count 1991-2000 2001-2005 1991-2000 2001-2005 1991-2000 2001-2005 2006 0.1295 1 1 0.1108 -0.0148 0.060 US 0.1495 0.1466 0.1493 0.64 0.83 0.0536 0.0094 0.053 0.1741 0.2008 0.54 0.83 0.0837 0.0247 0.070 8 France 0.2270 0.53 0.85 0.0473 0.0209 0.080 Germany 0.1538 0.52 0.81 0.0468 0.1225 0.058 10 Australia 1808 0.1617 0.411 0.43 -0.0177 0.0398 0.045 0.2432 11 Japan 0.1878 0.1687 0.1727 072 0.79 0.0727 0.1009 0.059 12 Canada 14 Inputs 2 The Covariance Matrix Portfolio 16 Weights 1.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 US UK France Germany Australia Japan Canada 0,0224 0.0184 0.0250 0.0288 0.0195 0.0121 0.0205 18 1.0000 US 0.0184 0.0223 0.0275 0.0299 0.0204 0.0124 0.0206 19 0.0000 UK 0.0000 France 0.0250 0.0275 0.0403 0.0438 0.0259 0.0177 0.0273 20 0.0000 Germany 0.0288 0.0299 0.0438 0.0515 0.0301 0.0183 0.0305 21 0.0195 0.0204 0.0259 0.0301 0.0261 0.0147 0.0234 22 0.0000 Australia 0.0121 0.0124 0.0177 0.0183 0.0147 0.0353 0.0158 0.0000 Japan 23 0.0000 Canada. 0.0205 0.0206 0.0273 0.0305 0.0234 0.0158 0.0298 25 1.0000 0.0224 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0600 Er P-r f 0.1495 SD P 0.4013 Sharpe P 28 29 A18 is set arbitrarily to 1 while A19 to A24 are set to 0 30 Cell A18 A24

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Use Venn diagrams to determine whether the foflowing categorical syllogisms (the CIRCLED ones) are valid or invalid. For each argument, be sure that vou symbolize it. When you diagram it, be sure to...

Budgeting for Nonprofit Organizations Although budgeting is just as important for nonprofit organizations as for for-profit companies, the approach taken toward budgeting can be very different. In...

Northern Virginia Community College HOW MUCH FINANCIAL RISK SHOULD YOU TAKE? Mark D. D'Antonio Nova Southeastern University FORT LAUDERDALE, FLORIDA, U.S.A. Abstract A successful retirement...

Questions posted in the last picture. Case Study 2: Cost of capital for the telephone industry in Russia The goal of this paper is to demonstrate how to compute the weighted average cost of capital...

Portfolio Performance Evaluation 1. Hedge funds I) are appropriate as a sole investment vehicle for an investor. II) should only be added to an already well-diversified portfolio. III) pose...

Hi, I am doing a project for derivatives class and I have some questions about a regression and Monte Carlo simulation that I need to come up with. So the goal is to hedge against CDS instruments by...

I would like to know if someone can assist with inputting the formulas into the Excel spreadsheets..... Answers are provided, however, the formulas were omitted. Week 9 Chapter 21: Problems 3(a-e),...

Include step by step explanations PART A Search & Identify from the website of MorningStar Bond Center What is Moody's credit rating for CAT's bonds? What is Moody's credit rating for DE's bonds?...

This is Strategic Financial Management subject. I'm having a hard time understanding the text below. Please help me understand it & Please help me prepare some questions and corresponding answers...

Help me formulate questions regarding Strategic Financial Management (using How and Why only) with this topics: 1. Strategic Role of Finance 2. Managing Risks 3. Challenges 4. Strategic Value Drivers...

Project Planning Appraisal and Control Assignment -A Precision Engineers Ltd. Is considering a proposal to replace one of its machines. The following data is available regarding the same: a. The...

When measuring small pressure differences with a manometer, often one arm of the manometer is inclined to improve the accuracy of reading. (The pressure difference is still proportional to the...

Let A be an nxn matrix that is similar to an upper triangular matrix and has the distinct eigenvalues 1 , 2 , ..., k with corresponding multiplicities m 1 , m 2 , ..., m k . Prove the following...

3. (LO1, 2, 3) Forest Gump, a hockey player from Edmonton, holds two types of accountsa risky and a retirement account. He purchases Greek and Spanish bonds for his risky account and invests in Bank...

1.Please give the definition of process as well as the differences between program and process. 2.When a process executes, please list and explain its possible states. 3.Please explain the concept of...