Question

In: Finance

Calculate E(rxy) for (50%X + 50%Y) portfolio E(rxz) for (50%X + 50%Z) portfolio from the following...

Calculate E(r_xy) for (50%X + 50%Y) portfolio E(r_xz) for (50%X + 50%Z) portfolio from the following data:

E(r_xy) E(r_xz)

(50%X + 50%Y) (50%X + 50%Z)

Yr (t) E(r_x) E(r_y) E(r_z)

2012 8.0 24.0 8.0

2013 10.0 20.0 12.0

2014 12.0 16.0 16.0

2015 14.0 12.0 20.0

2016 16.0 8.0 24.0

Expert Solution

Yr (t)	E(rx)	E(ry)	E(rz)
2012	8	24	8
2013	10	20	12
2014	12	16	16
2015	14	12	20
2016	16	8	24

E(Rxy) with 50% X and 50% in Y

Weight of X in the portfolio = W_X = 0.5, Weight of Y in the portfolio = W_Y = 0.5

In 2012

E(Rxy) = W_X*E[R_X] + W_Y*E[R_Y] = 0.5*8 + 0.5*24 = 16%

In 2013

E(Rxy) = W_X*E[R_X] + W_Y*E[R_Y] = 0.5*10 + 0.5*20 = 15%

In 2014

E(Rxy) = W_X*E[R_X] + W_Y*E[R_Y] = 0.5*12 + 0.5*16 = 14%

In 2015

E(Rxy) = W_X*E[R_X] + W_Y*E[R_Y] = 0.5*14 + 0.5*12 = 13%

In 2016

E(Rxy) = W_X*E[R_X] + W_Y*E[R_Y] = 0.5*16 + 0.5*8 = 12%

E(Rxz) with 50% X and 50% in Z

Weight of X in the portfolio = W_X = 0.5, Weight of Z in the portfolio = W_Z = 0.5

In 2012

E(Rxz) = W_X*E[R_X] + W_Z*E[R_Z] = 0.5*8 + 0.5*8 = 8%

In 2013

E(Rxz) = W_X*E[R_X] + W_Z*E[R_Z] = 0.5*10 + 0.5*12 = 11%

In 2014

E(Rxz) = W_X*E[R_X] + W_Z*E[R_Z] = 0.5*12 + 0.5*16 = 14%

In 2015

E(Rxz) = W_X*E[R_X] + W_Z*E[R_Z] = 0.5*14 + 0.5*20 = 17%

In 2016

E(Rxz) = W_X*E[R_X] + W_Z*E[R_Z] = 0.5*16 + 0.5*24 = 20%

Answer

Yr (t)	E(rx)	E(ry)	E(rz)	E(rxy)	E(rxz)
2012	8	24	8	16	8
2013	10	20	12	15	11
2014	12	16	16	14	14
2015	14	12	20	13	17
2016	16	8	24	12	20

jeff jeffy answered 7 months ago

The vector field given by E (x,y,z) = (yz – 2x) x + xz y +...

The vector field given by E (x,y,z) = (yz – 2x) x + xz y + xy z may represent an electrostatic field? Why? If so, finding the potential F a from which E may be obtained.

Solve the following system : z” + y ′ = cos x, y” − z =...

Solve the following system : z” + y ′ = cos x, y” − z = sin x, z(0) = −1, z′ (0) = −1, y(0) = 1, y′ (0) = 0.

Which of the following are correct for P(x,y,z)= xyz + x(yz)' + x'(y + z) +...

Which of the following are correct for P(x,y,z)= xyz + x(yz)' + x'(y + z) + (xyz)' ? 1) P(0, 0, 1) = 0 2) P(0, 1, 0) = 1 3) P(0, 0, 0) = 1 4) P(1, 1, 1) = 1 5) P(1, 0, 0) = 0

The curried version of let f (x,y,z) = (x,(y,z)) is let f (x,(y,z)) = (x,(y,z)) Just...

The curried version of let f (x,y,z) = (x,(y,z)) is let f (x,(y,z)) = (x,(y,z)) Just f (because f is already curried) let f x y z = (x,(y,z)) let f x y z = x (y z)

Let X, Y ⊂ Z and x, y ∈ Z Let A = (X\{x}) ∪ {x}....

Let X, Y ⊂ Z and x, y ∈ Z Let A = (X\{x}) ∪ {x}. a) Prove or disprove: A ⊆ X b) Prove or disprove: X ⊆ A c) Prove or disprove: P(X ∪ Y ) ⊆ P(X) ∪ P(Y ) ∪ P(X ∩ Y ) d) Prove or disprove: P(X) ∪ P(Y ) ∪ P(X ∩ Y ) ⊆ P(X ∪ Y )

If X, Y and Z are three arbitrary vectors, prove these identities: a. (X×Y).Z = X.(Y×Z)...

If X, Y and Z are three arbitrary vectors, prove these identities: a. (X×Y).Z = X.(Y×Z) b. X×(Y×Z) = (X.Z)Y – (X.Y)Z c. X.(Y×Z) = -Y.(X×Z)

A portfolio consists of 50% invested in Stock X and 50% invested in Stock Y. We...

A portfolio consists of 50% invested in Stock X and 50% invested in Stock Y. We expect two probable states to occur in the future: boom or normal. The probability of each state and the return of each stock in each state are presented in the table below. State Probability of state Return on Stock X Return on Stock Y Boom 20% 25% 35% Normal 80% 10% 5% What are the expected portfolio return and standard deviation? Select one: a....

You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z...

You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z as follows: Asset X: Annual return-10% Probability-0.50 Beta- 1.2 Proportion- 0.333 Asset Y: Annual Return-8% Probability-0.25 Beta- 1.6 Proportion- 0.333 Asset Z: Annual Return- 16% Probability- 0.25 Beta 2.0 Proportion- 0.333 Given the information, what is the expected annual rate of return of this portfolio? What is the beta of the portfolio in the table (containing X, Y, and Z)?

Digital Logic Simplify: F = (x’∙ y’∙ z’) + (x’∙ y ∙ z’) + (x ∙...

Digital Logic Simplify: F = (x’∙ y’∙ z’) + (x’∙ y ∙ z’) + (x ∙ y’ ∙ z’) + (x ∙ y ∙ z) F = (x + y + z’) (x + y’ + z’) (x’ + y + z’) (x’ + y’ + z)

Consider the following function: f (x , y , z ) = x 2 + y...

Consider the following function: f (x , y , z ) = x 2 + y 2 + z 2 − x y − y z + x + z (a) This function has one critical point. Find it. (b) Compute the Hessian of f , and use it to determine whether the critical point is a local man, local min, or neither? (c) Is the critical point a global max, global min, or neither? Justify your answer.