Question

In: Finance

Month Asset A returns Asset B returns Asset C returns 1 -4.0% 11.0% 15.5% 2 1.5%...

Month Asset A returns Asset B returns Asset C returns
1 -4.0% 11.0% 15.5%
2 1.5% 6.0% 14.5%
3 -1.5% -7.0% -9.5%
4 7.0% 7.5% 12.5%
5 2.0% -3.5% 22.5%
6 6.5% -6.5% -11.0%
7 -2.5% 13.5% 19.0%
8 3.5% 9.0% 20.0%
9 4.5% 9.0% -24.0%
10 1.5% 11.5% 13.0%
11 -4.5% -4.5% 17.0%
12 5.0% -2.5% -15.5%

1)    In Excel, calculate the standard deviation of each asset using the approach. ( DO NOT Use of the Excel stdev or related function )

2)    In Excel, calculate the average return of each asset using the approach. ( DO NOT Use of the Excel avg or related function )

3)    In Excel, calculate the covariance between the A and B assets. ( DO NOT Use of the Excel covar or related function)

4)    In Excel, calculate the covariance between the A and C assets. ( DO NOT Use of the Excel covar or related function )

5)    In Excel, calculate the covariance between the B and C assets. ( DO NOT Use of the Excel covar or related function)

Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

1. Plot each point. Label them A,B,C , and D. A. (2,-2) B. (-4,0 C. (1.5...
1. Plot each point. Label them A,B,C , and D. A. (2,-2) B. (-4,0 C. (1.5 5/2) D. ),5) 2. Find the x and Y intercepts of the gien equation and write answers in ordered pair form (x,y). Then graph the equation using these intercepts. 4x-3y=12 X-interceptis:______ Y-Intercepts is:_______ 3. Find the slope of the line passing through the given points using the slope formula, then graph the line using the slope found. (3,5) and (-5,6) m=_________ 5. Find the...
Miriam’s Investment Choices: Investment B Investment A Investment B Probability Returns Probability Returns 0.30 11.0% 0.40...
Miriam’s Investment Choices: Investment B Investment A Investment B Probability Returns Probability Returns 0.30 11.0% 0.40 15.0% 0.40 15.0% 0.25 20.0% 0.30 19.0% 0.15 18.0% 0.20 8.0% Calculate the coefficient of variation for investment B
a+b+c=(abc)^(1/2) show that (a(b+c))^(1/2)+(b(c+a))^(1/2)+(c(a+b))^(1/2)>36
a+b+c=(abc)^(1/2) show that (a(b+c))^(1/2)+(b(c+a))^(1/2)+(c(a+b))^(1/2)>36
There are three assets A, B and C. The returns for shares A, B and C...
There are three assets A, B and C. The returns for shares A, B and C over the next year have expected values 9%, 6%, 5% respectively. The standard deviations for A, B and C are 30%, 25% and 20% respectively. The covariance between these A and B is 0.0375, the covariance between A and C is -0.018, the covariance between B and C is -0.03. Ben currently has invested 40%, 40%, 20% in shares A, B and C respectively....
There are three assets A, B and C. The returns for shares A, B and C...
There are three assets A, B and C. The returns for shares A, B and C over the next year have expected values 10%, 5%, 3% respectively. The standard deviations for A, B and C are 30%, 25% and 20% respectively. The covariance between these A and B is 0.0375, the covariance between A and C is -0.018, the covariance between B and C is -0.03. Ben currently has invested equal amounts of his portfolio in shares A, B and...
1) Write a function equation(A, B) that returns a value C where A + B =...
1) Write a function equation(A, B) that returns a value C where A + B = C a. Write the equation function: b: Write the output of your function for a few values: 2) Write a non-recursive function called fact(n) that computes n! Try computing fact(n) for large values. Can you find the maximum value for n your program will compute correctly? a) Write your fact function: b) Write the output of your function for a few values: 3) Write...
You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns...
You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the assets are 10 percent and 27 percent, respectively. The standard deviations of the assets are 17 percent and 31 percent, respectively. The correlation between the two assets is 0.07 and the risk-free rate is 3 percent. What is the optimal Sharpe ratio in a portfolio of the two assets? (A negative value should be indicated by a minus sign. Do not round...
You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns...
You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the assets are 12 percent and 28 percent, respectively. The standard deviations of the assets are 12 percent and 33 percent, respectively. The correlation between the two assets is 0.06 and the risk-free rate is 5 percent. What is the optimal Sharpe ratio in a portfolio of the two assets? Can you show this in excel?
You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns...
You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the assets are 7 percent and 13 percent, respectively. The standard deviations of the assets are 33 percent and 41 percent, respectively. The correlation between the two assets is .49 and the risk-free rate is 5.8 percent. What is the optimal Sharpe ratio in a portfolio of the two assets? What is the smallest expected loss for this portfolio over the coming year...
You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns...
You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the assets are 12 percent and 15 percent. The standard deviations of the assets are 29 percent and 48 percent, respectively. The correlationg between the two assets is .20 and the risk free rate is 4 percent. What is the optimal Sharpe ratio in a portfolio of the two assets? What is the weight of each asset in the portfolio of the two...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT