Question

You wish to implement the XXX optimization for a portfolio containing 42 risky assets. To do...

You wish to implement the XXX optimization for a portfolio containing 42 risky assets. To do so, you will need to estimate three (3) different types of inputs.

1)How many expected returns do you need to implement the optimization?

2)How many expected variances do you need to implement the optimization?

3)How many covariances do you need to implement the optimization?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You wish to implement the XXX optimization for a portfolio containing 42 risky assets. To do...
You wish to implement the XXX optimization for a portfolio containing 42 risky assets. To do so, you will need to estimate three (3) different types of inputs. 1)How many expected returns do you need to implement the optimization? 3)How many covariances do you need to implement the optimization?
You wish to implement the James optimization for a portfolio containing 42 risky assets. To do...
You wish to implement the James optimization for a portfolio containing 42 risky assets. To do so, you will need to estimate three (3) different types of inputs.How many covariances do you need to implement the optimization?
You are contemplating a $200,000 investment portfolio containing three different assets. You plan to invest $50,000,...
You are contemplating a $200,000 investment portfolio containing three different assets. You plan to invest $50,000, $90,000, and $60,000 in assets A, B, and C, respectively. A, B, and C have expected annual returns of 15%, 18%, and 6%, respectively. The expected return of this portfolio is ______%?  Round it to two decimal places.
You have performed the XXXX optimization on a portfolio with 3 assets whose risk/return characteristics are...
You have performed the XXXX optimization on a portfolio with 3 assets whose risk/return characteristics are summarized in the table below: Asset 1 Asset 2 Asset 3 E[r] 5.00% 10.00% 15.00% s.d. 10.00% 15.00% 20.00% The ‘bordered matrix’ for the optimal risky portfolio based on these three assets is given below: Bordered matrix W1 W2 W3 -1.522 1.585 0.938 W1 -1.522 0.0232 -0.0261 -0.0044 W2 1.585 -0.0261 0.0565 -0.0033 W3 0.938 -0.0044 -0.0033 0.0352 1)Find the optimal risky portfolio’s expected...
You have performed the XXXX optimization on a portfolio with 3 assets whose risk/return characteristics are...
You have performed the XXXX optimization on a portfolio with 3 assets whose risk/return characteristics are summarized in the table below: Asset 1 Asset 2 Asset 3 E[r] 5.00% 10.00% 15.00% s.d. 10.00% 15.00% 20.00% The ‘bordered matrix’ for the optimal risky portfolio based on these three assets is given below: Bordered matrix W1 W2 W3 -1.522 1.585 0.938 W1 -1.522 0.0232 -0.0261 -0.0044 W2 1.585 -0.0261 0.0565 -0.0033 W3 0.938 -0.0044 -0.0033 0.0352 1)Find the optimal risky portfolio’s expected...
You have performed the James optimization on a portfolio with 3 assets whose risk/return characteristics are...
You have performed the James optimization on a portfolio with 3 assets whose risk/return characteristics are summarized in the table below: Asset 1 Asset 2 Asset 3 E[r] 5.00% 10.00% 15.00% s.d. 10.00% 15.00% 20.00% The ‘bordered matrix’ for the optimal risky portfolio based on these three assets is given below: Bordered matrix W1 W2 W3 -1.522 1.585 0.938 W1 -1.522 0.0232 -0.0261 -0.0044 W2 1.585 -0.0261 0.0565 -0.0033 W3 0.938 -0.0044 -0.0033 0.0352 Please, find the optimal risky portfolio’s...
Risky Asset A and Risky Asset B are combined so that the new portfolio consists of...
Risky Asset A and Risky Asset B are combined so that the new portfolio consists of 70% Risky Asset A and 30% Risky Asset B.  If the expected return and standard deviation of Asset A are 0.08 and 0.16, respectively, and the expected return and standard deviation of Asset B are 0.10 and 0.20, respectively, and the correlation coefficient between the two is 0.25: (13 pts.) What is the expected return of the new portfolio consisting of Assets A & B...
1. There are 2 assets you can invest in: a risky portfolio with an expected return...
1. There are 2 assets you can invest in: a risky portfolio with an expected return of 6% and volatility of 15%, and a government t-bill (always used as the 'risk-free' asset) with a guaranteed return of 1%. Your risk-aversion coefficient A = 4, and the utility you get from your investment portfolio can be described in the standard way as U = E(r) - 1/2 * A * variance. Assume that you can borrow money at the risk-free rate....
Suppose you are able to precisely identify the portfolio of risky assets with the highest Sharpe...
Suppose you are able to precisely identify the portfolio of risky assets with the highest Sharpe ratio (the "tangency portfolio"). The tangency portfolio has an expected return of 11% and a standard deviation of 15%. Risk-free treasuries return 3%. You are advising a client whose risk aversion is such that you would recommend they choose the "optimal" portfolio with an expected return of 7%. Which of the following portfolios does this description match? Multiple portfolios would meet this criterion 50%...
You invest $10,000 in portfolio XYZ. The portfolio XYZ is composed of a risky asset with...
You invest $10,000 in portfolio XYZ. The portfolio XYZ is composed of a risky asset with an expected rate of return of 15% and a standard deviation of 20% over the one year time period. The risk free asset has a rate of return of 5% over the same time period. How much money should be invested in the risky asset so that the standard deviation of returns on XYZ portfolio is 10% over the one year time horizon