Question
In: Finance
Q3.15You have been given the following return data on three assets: F, G and H and...
Q3.15You have been given the following return data on three assets: F, G and H and the two portfolios – over the period 2013 to 2016:
|
Year |
Asset F |
Asset G |
Asset H |
Portfolio FG |
Portfolio FH |
|
2013 |
16 |
17 |
14 |
16.5 |
15 |
|
2014 |
17 |
16 |
15 |
16.5 |
16 |
|
2015 |
18 |
15 |
16 |
16.5 |
17 |
|
2016 |
19 |
14 |
17 |
16.5 |
18 |
Using these assets, you have isolated three investment alternatives:
- 100% of Asset F
- 50% of Asset F and 50% of Asset G
- 50% of Asset F and 50% of Asset H
Required:
- Calculate the expected return for each of the three investment alternatives
- Calculate the standard deviation of returns for each of the three investment alternatives
- Based on your findings above, which of the three investment alternatives would you recommend? Justify your choice.
Solutions
Expert Solution
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
As nothing was mentioned excel is used. If you need with formula, let me know, will do that also. Thank you.
jeff jeffy answered 1 year agoRelated Solutions
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Portfolio analysis 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: Using these assets, you have isolated the three investment alternatives shown in the following table: a. Calculate the expected return over the 4-year period for each of the three altermatives. 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...
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
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Year
Asset F
Asset G
Asset H
2015
9
12
15
2016
8
9
16
2017
5
21
19
2018
13
6
11
Find the expected return, variance, std dev and coefficient of
variation for each asset.
Now consider a portfolio that consists of 25% of F, 50% of G
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You have been given the expected return data shown in the first table on three assets—F,...
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Year
Asset F
Asset G
Asset H
2015
9
12
15
2016
8
9
16
2017
5
21
19
2018
13
6
11
Find the expected return, variance, std dev and coefficient of
variation for each asset.
Now consider a portfolio that consists of 25% of F, 50% of G
and 25% of H. Find the expected return,...
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
Find the expected return, variance, std dev and coefficient of
variation for each asset.
Now consider a portfolio that consists of 25% of F, 50% of G
and 25% of H. Find the expected return,...
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...
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:
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
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Alternative Investment
1 100% of asset F
2 50% of asset F and 50% of asset G...
You have been given the following return data, Expected Return Year Asset F Asset G Asset...
You have been given the following return data,
Expected Return
Year
Asset F
Asset G
Asset H
2018
17%
16%
13%
2019
18%
15%
14%
2020
19%
14%
15%
2021
20%
13%
16%
Alternative
Investment
1
100%
of asset F
2
55%
of asset F and
45%
of asset G
3
55%
of asset F and
45%
of asset H
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Year
Asset A
Asset B
Asset C
2021
6%
10%
4%
2022
8%
8%
6%
2023
10%
6%
8%
2024
12%
4%
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3...
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Asset A
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Asset C
2013
16
17
14
2014
17
16
15
2015
18
15
16
2016
19
14
17
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1
100% of asset A
2
50% of asset A and 50% of asset B
3
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J
Prj
Return rj
Prj
Return rj
Prj
Return,rj
1
.10
40%
.40
35%
.10
40%
2
.20
10
.30
10
.20
20
3
.40
0
.30
-20
.40
10
4
.20
-5
.20
0
5
.10
-10
.10
-20
Calculate the expected value of return r for each of...
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