Question

Portfolio analysis???You have been given the expected return data shown in the first table on three...

Portfolio analysis???You have been given the expected return data shown in the first table on three

assetslong dash—?F,?G, and H long dash—over the period? 2016-2019:

Expected Return

Year

Asset F

Asset G

Asset H

2016

15?%

16?%

???

13?%

???

2017

16?%

15?%

14?%

2018

17?%

14?%

15?%

2019

18?%

13?%

16?%

Using these? assets, you have isolated the three investment alternatives shown in the following? table:

Alternative

Investment

1

?100% of asset F

2

?50% of asset F and? 50% of asset G

3

?50% of asset F and? 50% of asset H

a.??Calculate the expected return over the? 4-year period for each of the three alternatives.

b.??Calculate the standard deviation of returns over the? 4-year period for each of the three alternatives.

c.??Use your findings in parts a and b to calculate the coefficient of variation for each of the three alternatives.

d.??On the basis of your? findings, which of the three investment alternatives do you? recommend? ? Why?

Homework Answers

Answer #1

Year

Asset F

G

H

2016

15

16

13

2017

16

15

14

2018

17

14

15

2019

18

13

16

Average return = using average function in MS excel

16.5

14.5

14.5

standard deviation= using stdevp function in ms excel

1.118034

1.118034

1.118034

coefficient of variance = standard deviation/mean

6.78%

7.71%

7.71%

return

risk

Investment 1

16.50%

6.78%

Investment 2

(.5*.165)+(.5*.145)

15.5%

(.5*.678)+(.5*.771%)

34%

Investment 3

(.5*.165)+(.5*.145)

15.5%

(.5*.678)+(.5*.771%)

34%

Investment in alternative 1 is better as return is high and risk is low

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
Portfolio analysis???You have been given the expected return data shown in the first table on three...
Portfolio analysis???You have been given the expected return data shown in the first table on three assetslong dash—?F, ?G, and H—over the period? 2016-2019: Expected Return Year Asset F Asset G Asset H 2016 18% 19% ??? 16% ??? 2017 19?% 18% 17% 2018 20?% 17% 18?% 2019 21% 16% 19% Using these? assets, you have isolated the three investment alternatives shown in the following? table: Alternative Investment 1 ?100% of asset F 2 ?50% of asset F and? 50%...
you have been given the expected return data shown in the first table on three assetslong...
you have been given the expected return data shown in the first table on three assetslong dash—​F, ​G, and H long dash—over the period​ 2016-2019: Expected Return Year Asset F Asset G Asset H 2016 16​% 17​%     14​%     2017 17​% 16​% 15​% 2018 18​% 15​% 16​% 2019 19​% 14​% 17​% Using these​ assets, you have isolated the three investment alternatives shown in the following​ table Alternative Investment 1 ​100% of asset F 2 ​50% of asset F and​ 50% of...
You have been given the expected return data shown in the first table on three assets—F,...
You have been given the expected return data shown in the first table on three assets—F, G, and H—over the period 2016-2019 Year Asset F Asset G Asset H 2016 7 10 15 2017 6 8 16 2018 3 19 19 2019 11 9 11 Using these assets, you have isolated the three investment alternatives shown in the following table. Alternative Investment 1 100% of asset F 2 75% of asset F and 25% of asset G 3 50% of...
You have been given the expected return data shown in the first table on three assets—F,...
You have been given the expected return data shown in the first table on three assets—F, G, and H—over the period 2015-2018 Year Asset F Asset G Asset H 2015 9 12 15 2016 8 9 16 2017 5 21 19 2018 13 6 11 a. Find the expected return, variance, std dev and coefficient of variation for each asset. b.  Now consider a portfolio that consists of 25% of F, 50% of G and 25% of H. Find the expected...
You have been given the expected return data shown in the table on two assets, F...
You have been given the expected return data shown in the table on two assets, F and G, over the period 2010-2013. Expected return Year Asset F Asset G 2010 16% 15% 2011 12 13 2012 18 17 2013 20 12 If you invest 70% of your funds in asset F and 30% to asset G, Calculate the expected return over the 4-year period for the portfolio. Calculate the standard deviation of returns over the 4-year period for the portfolio.
You have been given the following return​ data, three assets ​A,​B, and C over the period...
You have been given the following return​ data, three assets ​A,​B, and C over the period 2021-2024     Expected Return       Year   Asset A   Asset B   Asset C 2021   8%             11%         5% 2022   10%            9% 7% 2023   12%            7%          9% 2024   14%            5%         11% Using these​ assets, you have isolated three investment​ alternatives: Alternative   Investment           1   100%   of asset A       2   45%   of asset A and   55%   of asset B...
The characteristics of four portfolios are shown below: Standard deviation Expected return % % Portfolio W...
The characteristics of four portfolios are shown below: Standard deviation Expected return % % Portfolio W 14 13 Portfolio X 26 16 Portfolio Y 15 11 Portfolio Z 10 7 Which portfolio would a risk-averse investor immediately reject? A        Portfolio W B        Portfolio X C        Portfolio Y D        Portfolio Z
Risk and return You are considering an investment in the stock market and have identified three...
Risk and return You are considering an investment in the stock market and have identified three potential stocks, they are Crown (ASX: CWN), Tencent (HKG: 0700) and Commonwealth Bank (ASX: CBA).  The historical prices for the past 10 years are shown in the table below.  Assume no dividend is distributed during this period. Year Crown Tencent Commonwealth (CBA) 2010 7.76 29.04 53.63 2011 8.57 40.40 52.15 2012 8.09 37.94 50.39 2013 11.59 54.28 64.10 2014 16.68 108.70 73.83 2015 13.61 132 88.85...
Assume you are considering a portfolio containing two assets, L and M. Asset L will represent...
Assume you are considering a portfolio containing two assets, L and M. Asset L will represent 45% of the dollar value of the portfolio, and asset M will account for the other 55%. The projected returns over the next six years, 2018–2023, for each of these assets are summarized in the following table. Projected Return (%) Year Asset L Asset M 2018 14% 21% 2019 13% 18% 2020 15% 15% 2021 17% 15% 2022 16% 11% 2023 20% 11% a.Use...
Determining missing items in return and residual income computations Data are presented in the following table...
Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $850,000 $187,000 (a)   12% (b)     (c)    $480,000   (d) (e)   (f)   $52,800 $24,000 $290,000   (g) 14% (h)   $29,000 (i)    $220,000 $46,200 (j)   13% (k)     (l)    Determine the missing items, identifying each item by the appropriate letter. For all amounts, round to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT