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