Question: You have been given the following return data on 3 assets; A, B and C over the period of 2013 -2016. Expected return Year Asset

  1. You have been given the following return data on 3 assets; A, B and C over the period of 2013 -2016.

Expected return

Year

Asset A

Asset B

Asset C

2013

16

17

14

2014

17

16

15

2015

18

15

16

2016

19

14

17

Using these assets, you have isolated three investment alternatives:

Option

Investment

1

100% of asset A

2

50% of asset A and 50% of asset B

3

50% of asset A and 50% of asset C

  1. Calculate the portfolio return over the four year period of each of the three alternatives.
  2. Calculate the standard deviation of returns over the four year period for each of the three alternatives.
  1. You have been given the following return data on 3 assets; A, B and C over the period of 2013 -2016.

Expected return

Year

Asset A

Asset B

Asset C

2013

16

17

14

2014

17

16

15

2015

18

15

16

2016

19

14

17

Using these assets, you have isolated three investment alternatives:

Option

Investment

1

100% of asset A

2

50% of asset A and 50% of asset B

3

50% of asset A and 50% of asset C

  1. Calculate the portfolio return over the four year period of each of the three alternatives.
  2. Calculate the standard deviation of returns over the four year period for each of the three alternatives.

PLEASE STATE ALL THE FORMULAS CLEARLY AND DUN ANS IN EXCEL.

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