Question: please answer as soon as possible it my exam please answer quickly PART 3. RATE OF RETURN The table shows the return on assets X

 please answer as soon as possible it my exam please answer

quickly PART 3. RATE OF RETURN The table shows the return on

please answer as soon as possible it my exam please answer quickly

PART 3. RATE OF RETURN The table shows the return on assets X and Y at the end of month t since the previous entry. t 2 6 Return on X Return on Y 0.105 -0.015 0. -0.04 0.03 0.115 0.095 0.045 0.015 0.02 - Investment history (0.5, 0.5) (wx, wy) your portfolio weights 13 18 24 1. What is the holding period return of asset Y alone? Mark value: 1 Answer type: Real number 2. What is the holding period return of your portfolio? Mark value: 1 Answer type: Real number 3. What is the yearly-equivalent holding period return of your portfolio? Mark value: 1 Answer type: Real number 4. The holding period return on your portfolio would be higher if the biggest returns on X and Y happened earliest during the investment period. In other words, the order of gains and losses matters. Mark value: 1 Answer type: True or False 5. The monthly holding period return is better than the average monthly return as a measure of the profitability of your investment. Mark value: 1 Answer type: True or False PART 5. FISHER SEPARATION Zelda lives in a two-period, riskless production-and-exchange economy. Her intertemporal utility function is u(Co,C) = C+C and her investment opportunities are represented by C = a - b Cz. {72 000, 32 159) Zelda's endowment 0.31 a 0.065 - Interest rate 84.000 0.00001 1000 Number of shares currently outstanding (question 10 only) 1. How wealthy is Zelda if she does not invest in real production? Mark value: 1 Answer type: Integer 2. What is zeda's optimal real investment? Mark value: 1 Answer type: Integer 3. How wealthy will she be if she invests optimally? Mark value: 1 Answer type: Integer 4. What is the net present value of her investment? Mark value: 1 Answer type: Integer 5. If the interest rate was higher, Zelda would invest more. Mark value: 1 Answer type: True or False 6. How much will she consume now if she invests? Mark value: 1 Answer type: Integer 7. How much will she consume next year if she invests? Mark value: 1 Answer type: Integer 8. Will she smooth her consumption? Explain. Mark value: 2 Answer type: Text (no more than one sentence) 9. How much will she borrow or lend? Mark value: 1 Answer type: Integer (negative = borrows) 10. Suppose Zelda is not a person but an all-equity company that will issue new shares to finance the optimal investment. How many shares will be issued? Mark value: 2 Answer type: Integer

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