Stocks Percent Price 0 Final price JPM 0,33 152,66 158 NIO 0,34 45,04 37,61 AMC 0,33 31,3
Question:
| Stocks | Percent | Price 0 | Final price |
| JPM | 0,33 | 152,66 | 158 |
| NIO | 0,34 | 45,04 | 37,61 |
| AMC | 0,33 | 31,3 | 45,21 |
A) Report the overall realized return on your investment portfolio.
Realized return of portfolio=w1*R1+w2*R2+w3*R3+w4*R4
wi=weight of stock ‘’i’’ in your portfolio
Ri=realized return of asset ‘’i’’= (Price @ end – Price @ beginning)/Price @ beginning
OR
more formally:
R=(P[t+1]-P[t])/P[t]
B) Report the variance-covariance matrix
Take estimates from the other web pages
You can take estimates of volatilities of individual stocks from Reuters, Bloomberg, Yahoo finance or other sources. If you are not quite sure how to estimate covariances between stocks:
You can take estimates of Reuters, Bloomberg or other credible web page.
C) Compute the volatility of your portfolio
Sigma2_p= w_T* Variance-covariance matrix*w
D) Compute Sharpe ratio, assuming risk-free rate of 2%. Interpret Sharpe ratio.
Expert Answer:
A Realized return of portfolio03315815266152660343761450445040334521313313 03300380340166033044 001300570146 0102 The realized return on the investmen... View the full answer
