Description of this paper

Portfolio Analysis & CAPM Rate of Return Y...

Description

Solution


Question

Portfolio Analysis & CAPM Rate of Return Year Asset A Asset B Market Index 1 8.0% 19.0% 9.0% 2 -11.0% 12.0% 14.0% 3 18.0% 19.0% 4.0% 4 -2.0% -14.0% -4.0% 5 12.0% 13.0% 17.0% 1. What was the Average Rate of Return on the two Assets and the Market Index (Use the =Average function) 2. What was the Standard Deviation of Returns for the two Assets and the Market Index? (Use the =STDEV function) 3. What was the Correlation of Returns for Asset A and B, Asset A with the Market Index and Asset B with the Market Index? (Use the =correl function) 4. Calculate the Expected Return and the Standard Deviation of Returns for Porfolios with the following compostion: % Asset A % Asset B Expected Return Std Dev of Returns 0 100% 25% 75% 50% 50% 75% 25% 100% 0% 5. Plot a curve for the Feasable Set of Portfolio Results using the data from (4) with the Portfolio Std Dev on the X-Axis and the Portfolio Expected Returns on the Y-Axis (Use Insert and then Scatter Plot under the Chart functions)

 

Paper#5407 | Written in 18-Jul-2015

Price : $25
SiteLock