Question

Portfolio analysis You have been given the historical return data shown in the first table on three assets-F, G, and H-over the period 2016-2019. 8-14 Historical return Year Asset F Asset G Asset H 2016 16% 2017 17 17% 16 15 14 14% 15 16 17 18 20 2019 18 19

Answer 1

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10 21 e 9 * . V 2 L A pravi mandura 1407 ENG 0201 2020 - 578 File Home Insert Share Review View = = = = = = STATS - Excel Ho t ell me wiat you want to do Wrap Text General Merge & Center. . . % Conditional Format as Cell Formatting - Table Styles - Alignment Number syns AutoSam Page Layout formules Data Calibri vu VAA B I U . . .A Font fio IZ JA Copy - Insert Delete Format - - Clear AY Sort & Find & Filter - Select- Edeng JC JD J E JE G H I J K A Paste Format Painter Clipboard JB176 : * IN 176 177 178 179 180 181 PORTFOLIO PORTFOLIO FG FH ASSET 2016 2017 2018 2019 17 18 14 15 16 16.5 (=50%*(JA179)+50%* (JB179)] 16.5 (-50%* (JA180)+50%*(JB180)] 16.5 (=50%* (JA181)+50% *(JB181)] 16.5 (=50* (JA182)+50% *(JB182)] 15.00 (=50%*(JA179)+50%*(JC179)] 16.00 (=50%*(JA180)+50%* (JC180)] 17.00 [=50%*(JA181)+50%*(JC181)] 18.00 (=50%*(JA182)+50%* (JC182)] 182 19 17 EXPECTED RETURN FOR ALTERNATIVE 1 = 100% ASSET F = 17.50 [=AVERAGE(JA179:JA182)] EXPECTED RETURN FOR ALTERNATIVE 2 = 50% ASSET F AND 50% G= 16.50 (=AVERAGE(JD179:JD182)] 183 184 a 185 186 187 188 189 190 b EXPECTED RETURN FOR ALTERNATIVE 3 = 50% ASSET F AND 50% H = 16.50 [=AVERAGE(JG179:JG182)] STANDARD DEVIATION FOR ALTERNATIVE 1 = 100% ASSET F = 1.29 CESTDEV.S(JA179:JA182)] 191 0.00 [=STDEV.S(JD179:JD182)] 192 STANDARD DEVIATION FOR ALTERNATIVE 2 = 50% ASSET F AND 50% G = 193 194 STANDARD DEVIATION FOR ALTERNATIVE 3 = 50% ASSET F AND 50% H = 195 ... EMV MEAN STDV assignment DEAR Sheet2 COV TIME SERIES corr REGRESSION range CAMERA Circular References 1.29 [-STDEV.S(JG179:JG182)] TREND freq MATRIX INTERVAL, NORMAL SQC HYPOTHESIS # GP .. O P - + 140

2 ENG Va R pravi mandura 1409 201 2020 - 518 Share Copy - AutoSum" AYO Sort & Find & Clear Filter - Select- Edeng H I J K A 10 21 e 9 * . STATS - Excel Tile Home Insert Page Layout Formulas Data Review View Help Tell me winat you want to do Calibri vu VAA = = = Wrap Text v e FX Paste Format Painter B I U . . .A = = = Merge & Center. . . % Conditional Format as Cell Insert Delete Format Formatting Table Styles - - - - Clipboard Font Alignment Number Styles JB211 - X fx 1 IN IZ JA JC JD J E JE G 195 196 C COEEFICIENT OF VARIATION = STANDARD DEVIATION /EXPECTED RETURN 197 198 FOR ALTERNATIVE 1 0.074 (=JF190/JF184) 199 FOR ALTERNATIVE 2 0.000 (=JF192/JF186] 200 FOR ALTERNATIVE 3 0.078 (=JF194/JF188] 201 202 ALTERNATIVE 2 IS THE BEST CHOICE BECAUSE ASSETS ARE NEGATIVELY CORRELATED 204 AND COEEFICIENT OF VARIATION IS LOWEST = ZERO = ZERO RISK 205 203 d 208 210 211 212 213 214 ... EMV MEAN STDV assignment DEAR Sheet2 COV TIME SERIES corr REGRESSION range CAMERA TREND freq MATRIX INTERVAL, NORMAL HYPOTHESIS SQC GP ... P - > 140 Circular References # +