Question
In: Finance
6. You are a portfolio manager. There are 6 different funds you can invest in for...
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?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
You are a portfolio manager. There are 6 different funds you can invest in for your...
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
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As a portfolio manager, you are considering three mutual funds: a stock fund, a bond fund,...
As a portfolio manager, you are considering three mutual funds:
a stock fund, a bond fund, and a money market bond that yields a
sure rate of
2.45 %.
Below is the information concerning the two risky funds: (Total 50
points)
Expected return
Standard deviation
Stock fund
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Bond fund
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Expected return
Standard deviation
Stock fund
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Bond fund
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