The partial model lists 66 different combinations of portfolio weights. For each combination of weights, find the
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Question:
The partial model lists 66 different combinations of portfolio weights. For each combination of weights, find the required return and standard deviation. If you would like a return of 10.50 percent, what is the smallest standard deviation that you must accept? Why? | ||||||
Portoflio # | wA | wB | wC | Variance | sp | rp |
1 | 0.0 | 0.0 | 1.0 | |||
2 | 0.0 | 0.1 | 0.9 | |||
3 | 0.0 | 0.2 | 0.8 | |||
4 | 0.0 | 0.3 | 0.7 | |||
5 | 0.0 | 0.4 | 0.6 | |||
6 | 0.0 | 0.5 | 0.5 | |||
7 | 0.0 | 0.6 | 0.4 | |||
8 | 0.0 | 0.7 | 0.3 | |||
9 | 0.0 | 0.8 | 0.2 | |||
10 | 0.0 | 0.9 | 0.1 | |||
11 | 0.0 | 1.0 | 0.0 | |||
12 | 0.1 | 0.0 | 0.9 | |||
13 | 0.1 | 0.1 | 0.8 | |||
14 | 0.1 | 0.2 | 0.7 | |||
15 | 0.1 | 0.3 | 0.6 | |||
16 | 0.1 | 0.4 | 0.5 | |||
17 | 0.1 | 0.5 | 0.4 | |||
18 | 0.1 | 0.6 | 0.3 | |||
19 | 0.1 | 0.7 | 0.2 | |||
20 | 0.1 | 0.8 | 0.1 | |||
21 | 0.1 | 0.9 | 0.0 | |||
22 | 0.2 | 0.0 | 0.8 | |||
23 | 0.2 | 0.1 | 0.7 | |||
24 | 0.2 | 0.2 | 0.6 | |||
25 | 0.2 | 0.3 | 0.5 | |||
26 | 0.2 | 0.4 | 0.4 | |||
27 | 0.2 | 0.5 | 0.3 | |||
28 | 0.2 | 0.6 | 0.2 | |||
29 | 0.2 | 0.7 | 0.1 | |||
30 | 0.2 | 0.8 | 0.0 | |||
31 | 0.3 | 0.0 | 0.7 | |||
32 | 0.3 | 0.1 | 0.6 | |||
33 | 0.3 | 0.2 | 0.5 | |||
34 | 0.3 | 0.3 | 0.4 | |||
35 | 0.3 | 0.4 | 0.3 | |||
36 | 0.3 | 0.5 | 0.2 | |||
37 | 0.3 | 0.6 | 0.1 | |||
38 | 0.3 | 0.7 | 0.0 | |||
39 | 0.4 | 0.0 | 0.6 | |||
40 | 0.4 | 0.1 | 0.5 | |||
41 | 0.4 | 0.2 | 0.4 | |||
42 | 0.4 | 0.3 | 0.3 | |||
43 | 0.4 | 0.4 | 0.2 | |||
44 | 0.4 | 0.5 | 0.1 | |||
45 | 0.4 | 0.6 | 0.0 | |||
46 | 0.5 | 0.0 | 0.5 | |||
47 | 0.5 | 0.1 | 0.4 | |||
48 | 0.5 | 0.2 | 0.3 | |||
49 | 0.5 | 0.3 | 0.2 | |||
50 | 0.5 | 0.4 | 0.1 | |||
51 | 0.5 | 0.5 | 0.0 | |||
52 | 0.6 | 0.0 | 0.4 | |||
53 | 0.6 | 0.1 | 0.3 | |||
54 | 0.6 | 0.2 | 0.2 | |||
55 | 0.6 | 0.3 | 0.1 | |||
56 | 0.6 | 0.4 | 0.0 | |||
57 | 0.7 | 0.0 | 0.3 | |||
58 | 0.7 | 0.1 | 0.2 | |||
59 | 0.7 | 0.2 | 0.1 | |||
60 | 0.7 | 0.3 | 0.0 | |||
61 | 0.8 | 0.0 | 0.2 | |||
62 | 0.8 | 0.1 | 0.1 | |||
63 | 0.8 | 0.2 | 0.0 | |||
64 | 0.9 | 0.0 | 0.1 | |||
65 | 0.9 | 0.1 | 0.0 | |||
66 | 1.0 | 0.0 | 0.0 |
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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