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. Morgan Asset Management publishes information about financial investments. Between 2002 and 2011 the expected return for the S&P 500 was 5.04% na standard deviation of 19.45% and the expected return over that same period for a Core Bonds fund was 5.78% with a standard deviation of 2.13% (J. P. gan Asset Management, Guide to the Markets). The publication also reported that the correlation between the S&P 500 and Core Bonds is -0.32. You are sidering portfolio investments that are composed of an S&P 500 index fund and a Core Bonds fund. Using the information provided, determine the covariance between the S&P 500 and Core Bonds. Round your answer to two decimal places. If required enter ative values as negative numbers. Construct a portfolio that is 50% invested in an S&P 500 index fund and 50% in a Core Bond fund. Let x represent the S&P 500 and y represent the Core d fund. Round your answers to one decimal place. x + ercentage terms, what is the expected return and standard deviation for such a portfolio? Round your answers to two decimal places. ected return ndard deviation Construct a portfolio that is 20% invested in an S&P 500 index fund and 80% invested in a Core bond fund. Let x represent the S&P 500 and y represent the Bond fund. Round your answers to one decimal place. ercentage terms, what is the expected return and standard deviation for such a portfolio? Round your answers to two decimal places. ected return % dard deviation %

. Morgan Asset Management publishes information about financial investments. Between 2002 and 2011 the expected return for the S&P 500 was 5.04% na standard deviation of 19.45% and the expected return over that same period for a Core Bonds fund was 5.78% with a standard deviation of 2.13% (J. P. gan Asset Management, Guide to the Markets). The publication also reported that the correlation between the S&P 500 and Core Bonds is -0.32. You are sidering portfolio investments that are composed of an S&P 500 index fund and a Core Bonds fund. Using the information provided, determine the covariance between the S&P 500 and Core Bonds. Round your answer to two decimal places. If required enter ative values as negative numbers. Construct a portfolio that is 50% invested in an S&P 500 index fund and 50% in a Core Bond fund. Let x represent the S&P 500 and y represent the Core d fund. Round your answers to one decimal place. x + ercentage terms, what is the expected return and standard deviation for such a portfolio? Round your answers to two decimal places. ected return ndard deviation Construct a portfolio that is 20% invested in an S&P 500 index fund and 80% invested in a Core bond fund. Let x represent the S&P 500 and y represent the Bond fund. Round your answers to one decimal place. ercentage terms, what is the expected return and standard deviation for such a portfolio? Round your answers to two decimal places. ected return % dard deviation %

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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J. P. Morgan Asset Management publishes information about financial investments. Between 2002 and 2011 the expected return for the S&P 500 was 5.04% with a standard deviation of 19.45% and the expected return over that same period for a Core Bonds fund was 5.78% with a standard deviation of 2.13% (J. P. Morgan Asset Management, Guide to the Markets). The publication also reported that the correlation between the S&P 500 and Core Bonds is -0.32. You are considering portfolio investments that are composed of an S&P 500 index fund and a Core Bonds fund. a. Using the information provided, determine the covariance between the S&P 500 and Core Bonds. Round your answer to two decimal places. If required enter negative values as negative numbers. b. Construct a portfolio that is 50% invested in an S&P 500 index fund and 50% in a Core Bond fund. Let x represent the S&P 500 and y represent the Core Bond fund. Round your answers to one decimal place. r 3= In percentage terms, what is the expected return and standard deviation for such a portfolio? Round your answers to two decimal places. Expected return % Standard deviation c. Construct a portfolio that is 20% invested in an S&P 500 index fund and 80% invested in a Core bond fund. Let x represent the S&P 500 and y represent the Core Bond fund. Round your answers to one decimal place. r = In percentage terms, what is the expected return and standard deviation for such a portfolio? Round your answers to two decimal places. Expected return Standard deviation %
Transcribed Image Text:J. P. Morgan Asset Management publishes information about financial investments. Between 2002 and 2011 the expected return for the S&P 500 was 5.04% with a standard deviation of 19.45% and the expected return over that same period for a Core Bonds fund was 5.78% with a standard deviation of 2.13% (J. P. Morgan Asset Management, Guide to the Markets). The publication also reported that the correlation between the S&P 500 and Core Bonds is -0.32. You are considering portfolio investments that are composed of an S&P 500 index fund and a Core Bonds fund. a. Using the information provided, determine the covariance between the S&P 500 and Core Bonds. Round your answer to two decimal places. If required enter negative values as negative numbers. b. Construct a portfolio that is 50% invested in an S&P 500 index fund and 50% in a Core Bond fund. Let x represent the S&P 500 and y represent the Core Bond fund. Round your answers to one decimal place. r 3= In percentage terms, what is the expected return and standard deviation for such a portfolio? Round your answers to two decimal places. Expected return % Standard deviation c. Construct a portfolio that is 20% invested in an S&P 500 index fund and 80% invested in a Core bond fund. Let x represent the S&P 500 and y represent the Core Bond fund. Round your answers to one decimal place. r = In percentage terms, what is the expected return and standard deviation for such a portfolio? Round your answers to two decimal places. Expected return Standard deviation %
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