In: Finance
6. You are a portfolio manager. There are 6 different
funds you can invest in for your client. Each of the 4 scenarios
are equally likely to occur.
Fund Scenario 1 Scenario 2 Scenario 3 Scenario 4
A 22.61 26.6 6.54 -3.36
B 15.12 18.48 10.6 5.08
C 19.69 17.91 5.99 -2.11
D 14.03 11.2 -1.99 6.68
E 7.62 7.92 9.26 3.75
F 6.52 13.27 15.05 14.22
a. Your client wants an annual return no less than 4%. All
scenarios are equally likely to occur. Put your work in the tab
labeled Moderate. How much should you invest in each stock? What is the
maximum return you would expect for each scenario?
b. If your client wants a conservative portfolio, how much should
you invest in each stock? What is the maximum return you would
expect for each scenario?