Question
In: Accounting
Table 1: ANNUAL RETURNS (%) Lyx Malaysia Lyx Singapore Lyx USDJIA Lyx would 2009 2.00 5.86...
Table 1: ANNUAL RETURNS (%)
|
Lyx Malaysia |
Lyx Singapore |
Lyx USDJIA |
Lyx would |
|
|
2009 |
2.00 |
5.86 |
5.56 |
7.69 |
|
2010 |
4.25 |
22.40 |
6.11 |
5.79 |
|
2011 |
-29.40 |
-27.07 |
7.94 |
-3.28 |
|
2012 |
13.23 |
0.06 |
18.29 |
20.75 |
|
2013 |
8.86 |
-6.84 |
17.09 |
14.14 |
|
2014 |
2.31 |
33.87 |
14.20 |
15.06 |
|
2015 |
-2.96 |
-9.28 |
-4.71 |
-4.28 |
Table 2: PORTFOLIO WEIGHTS (%)
|
Assets |
Exising Portfolio Weights |
New Portfolio Weights |
|
Lyx Malaysia |
60 |
40 |
|
Lyx Singapore |
40 |
30 |
|
Lyx USDJIA |
30 |
Questions:
-
Using the given information in Table 1, calculate the mean return, standard deviation, covariance and correlation for the given stocks.
-
Calculate the return and standard deviation for the portfolio consisting of the two stocks.
-
After adding the stock Lyx USDJIA, what is the portfolio return and standard deviation? How does the new portfolio differ from the first portfolio calculate in question 2?
-
Basedonyouranalysis,explainshouldAlbertdiversifyhisportfolioorremain invested in Malaysia and Singapore only?
-
Calculate beta for the current portfolio and the new portfolio. Assuming a risk free rate of 2.5% and a market risk premium of 5.5% and calculate the expected return for both portfolios.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Year
Scientific Atlanta (%)
AT&T (%)
1989
80.95
58.26
1990
-47.37
-33.79
1991
31
29.88
1992
132.44
30.35
1993
32.02
2.94
1994
25.37
-4.29
1995
-28.57
28.86
1996
0.00
-6.36
1997
11.67
48.64
1998
36.19
23.55
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Year
Period (t)
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2009
1
23.6
2010
2
29.2
2011
3
37.8
2012
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50.3
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59.8
2014
6
66.6
a)
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The following table shows a company's annual revenue (in billions of dollars) for 2009 to 2014....
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billions of dollars) for 2009 to 2014.
Year
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(t)
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2011
3
37.8
2012
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50.3
2013
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59.7
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EXCEL FILE ONLY
Refer to the table below. The table below shows the annual
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relationship between the arithmetic and geometric mean returns?
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Nasdaq Composite Index
1.37
8.59
50.0
-31.5
-21.1
-39.3
85.6
39.6
21.6
22.7
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Year
Energy (%)
Health Care (%)
2012
44.6
15.41
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10.87
2014
37
10.43
2015
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-18.45
2016
28.36
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a.
The Energy Fund performed better, because its Sharpe Ratio was
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Large-company stocks 11.7 % 20.6 % Small-company stocks 16.4 33.0
Long-term corporate bonds 5.6 9.1 Long-term government bonds 6.1
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?19.1?%
16.4?%
17.9?%
?49.5?%
43.2?%
1.9?%
?16.7?%
45.5?%
45.4?%
?3.8?%
a. What is the arithmetic average return over the? 10-year
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stock splits). Use the information for ABC Corp. (ABC ) and XYZ
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Year
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2000
-9.0%
2001
-11.9%
2002
-22.0%
2003
28.4%
2004
10.7%
2005
4.8%
2006
15.6%
2007
5.5%
2008
-36.6%
2009
25.9%
2010
14.8%
2011
2.1%
2012
15.9%
2013
32.2%
2014
13.5%
2015
1.4%
2016
11.7%
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