Your retirement product manager asks you to construct examples of portfolios for various objectives. You have...
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Your retirement product manager asks you to construct examples of portfolios for various objectives. You have the following information of each class of stocks and assets. Cash Saving Treasury Funds Industry Stocks Tech Stocks 1% 17% 2% 0.5% 0% 35% The correlations between each class of stocks and assets are Expected Return Standard Deviation Cash Saving Treasury Funds Industry Stocks Tech Stocks 8% 12% Cash Saving Treasury Funds Industry Stocks Tech Stocks -0.2 -0.8 0.1 Present three separate examples of portfolios - (1) Conserve funds while achieving 7% return, (2) Aggressive wealth-building with sufficiently diversified risks, and (3) Stock funds with least risks. One of the portfolios (1) or (2) must use three items. Each portfolio must show the calculation and must be provided with risk and return information. Your retirement product manager asks you to construct examples of portfolios for various objectives. You have the following information of each class of stocks and assets. Cash Saving Treasury Funds Industry Stocks Tech Stocks 1% 17% 2% 0.5% 0% 35% The correlations between each class of stocks and assets are Expected Return Standard Deviation Cash Saving Treasury Funds Industry Stocks Tech Stocks 8% 12% Cash Saving Treasury Funds Industry Stocks Tech Stocks -0.2 -0.8 0.1 Present three separate examples of portfolios - (1) Conserve funds while achieving 7% return, (2) Aggressive wealth-building with sufficiently diversified risks, and (3) Stock funds with least risks. One of the portfolios (1) or (2) must use three items. Each portfolio must show the calculation and must be provided with risk and return information.
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Conserve funds while achieving 7 return To achieve a 7 return while conserving funds we need to sele... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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