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Asset Management publishes information about financial investments. Between 2002 and 2011 the expected return for the S&P 500 was 5.04% rd 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. 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 prtfolio investments that are composed of an S&P 500 index fund and a Core Bonds fund.

Asset Management publishes information about financial investments. Between 2002 and 2011 the expected return for the S&P 500 was 5.04% rd 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. 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 prtfolio investments that are composed of an S&P 500 index fund and a Core Bonds fund.

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.
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.
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. 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. x + 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 d. Construct a portfolio that is 80% invested in an S&P 500 index fund and 20% 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. 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: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. 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. x + 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 d. Construct a portfolio that is 80% invested in an S&P 500 index fund and 20% 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. 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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