Question: please help me solve these problem, all the necessary information have been provided andlow Help Park1 001.C04 pat 1. The past returns on asset A
please help me solve these problem, all the necessary information have been provided


andlow Help Park1 001.C04 pat 1. The past returns on asset A and Asset B are tabulated as follow: Year Return on asset A Return on asset B 1989 11% -4% 1990 9% 15% 1991 26% 8% 1992 12% 20% 1993 -3% 6% 1. Calculate average returns and standard deviations of asset A and asset B. 2. Calculate the covariance and the correlation coefficient between returns on asset A and asset B. 3. Calculate the average return and the standard deviation for each of following six portfolios. Portfolio #1 #2 #3 #4 #5 #6 Min Risk % invested in asset A (WA) 100 75 50 25 0 Calculate WA (Eq 8) invested in asset B (WB) 0 25 50 75 100 Calculate WB (Eq 8) Draw a graph similar to Fig 7-12 in page 210. You need to mark six portfolios in your graph. 5. Identify: a. the maximum return portfolio, b. efficient portfolios. c. the minimum risk portfolio.
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