Question: Using the data below, what is the optimal allocation (weight) to A, B, C, D, E, and the S&P? Show your answer in the

Using the data below, what is the optimal allocation (weight) to A, B, C, D, E, and the S&P? Show your answer in the following format: A = 10%, B = 10%, C = 20%, D = 0%, E = 25%, S&P = 35%. You will receive 5 bonus points if your solution is correct. Year A, % B, % 1 10.67 -3.76 2 12.54 21.67 3 -8.82 19.84 4 5:56 13.37 5 27.34 4.98 6 21.94 11.35 C, % 12.98 45.23 16.52 14.28 -15.53 1.28 D, % 25.51 18.97 -11.57 21.42 26.22 17.23 E, % 8.96 29.67 -12.07 25.68 31.08 -12.87 S&P, % 0.34 15.94 4.66 -4.45 15.14 -2.89

Step by Step Solution

★★★★★

3.47 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To determine the optimal allocation weight to A B C D E and the SP based on the provided data we nee... View full answer

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 Accounting Questions!

A researcher wanted to find out if there was difference between older movie goers and younger movie goers with respect to their estimates of a successful actors income. The researcher first...

For each row in all 4 columns, add the number of heads (0-4 heads) for each row, and plot that on a histogram. Contrast the actual values with the expected values based on a binomial distribution for...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

Suppose you wanted to hasten the transition from a depletable fossil fuel to solar energy. Compare the effects of a per-unit tax on the depletable resource to an equivalent per-unit subsidy on solar...

The auditor has identified each of the following control procedures as important in reducing control risk in major accounting applications. Required For each control procedure identified, indicate...

Show how the diketone at the right could be prepared by a condensation reaction: lion to bolo HO R OEt + + R EtOH

What happens to the margin of error in a confidence interval for the mean when the sample size is (a) doubled? (b) quadrupled?

Memorial Hospital is a 265-bed regional health care facility located in the mountains of western North Carolina. The mission of the hospital is to provide quality health care to the people of Ashe...

which of the following code performa linear search recursively?

Ellipses Corp is a small business that operates in Herndon, VA. The company is located at10 Period Lane, Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its...

Use the following information to answer the next two questions You run a regression of weekly returns of Suncor Energy Inc. on the S&P/TSX Composite Index and come up with the following output for...

Is there any lesson of significance that you have learned from the Goal? If so, explain the relevance of this operational phenomenon to service-based and manufacturing organizations.

The OM supervisor informs you, the researcher, that the data has a large standard deviation. What data pattern would you expect to observe once you generated a time series trend?

Kari, a member of the Wave Earbuds research team, will be presenting findings about the prototype for the new wireless earbuds during an upcoming meeting. Since this meeting will have representatives...

Correct answer with proper explanation Jack could manufacture COVID 19 test kits using two processes. For process 1, the unit cost of the first two million kits is $10, and the unit cost is reduced...

Explain the concept of masking interrupts. Discuss different masking mechanisms and how they can affect the execution of a program. Describe difficulties you might encounter when developing an...

Question 2 1 pts Suppose Company X had an EPS of $0.40, sales of $400 million, EBITDA of $85 million, stockholder's equity of $480 million, $13 million of debt, cash of $60 million, and 90 million...

Solve for the equilibria of the following discrete-time dynamical systems Pr pt+1 = Pr+2.0(I-Pr)

In Exercises 1-2, a linear transformation T: V V is given. If possible, find a basis C for V such that the matrix [T] c of T with respect to C is diagonal. 1. 2. 4b T: R R' defi by T b La 5b TR...

Suppose that T : Rn Rn is a linear transformation and suppose that v is a vector such that T(v) 0 but T2 = T o T). Prove that v and T(v) are linearly independent.

In Exercise, determine whether b is in col (A) and whether w is in row(A), as in Example 3.4 1 . w = [-1 1 1] 1 01 2

11.23. Use software with the "house selling price" data file to allow interaction between number of bedrooms and number of bathrooms in their effects on selling price. (a) Interpret the fit by...

11.3. Refer to the previous exercise: (a) For fixed home size, how much would lot size need to increase to have the same impact as a one square foot increase in home size? (b) Suppose house selling...

10.38. Give an example of three variables for which the effect of X\ on Y would be (a) Spurious, disappearing when X2 is controlled (b) Part of a chain relationship, disappearing when an intervening...