Assuming the below annual rates of return: Annual Rates of Return: Wamart - 12.36% Coca Cola - 25.51% Pfizer - 14% CVS - 32.99% Berkshire Hathaway - 29.66% Assume that you initially invested $1,000,000 in the portfolio and that the distribution of the annual rate of return of the portfolio is normal.  What is the distribution of the return of the portfolio 20 years after its formation?  Provide the graph of the distribution of the return of the portfolio.

Q: Value of the portfolio today is $100. Annual mean μ= 20%, variance ?2=10%. Time horizon is one year.…

A: Given: Value of portfolio = $100 Mean = 20% variance = 10%

Q: The market risk premium is given as 10.3 percent. The risk free rate is 2.9 percent. You invest…

A: Capital Asset Pricing Model (CAPM) is a financial model to determine the minimum required rate of…

Q: A portfolio consists of assets with the following expected returns: Technology Stocks 20%…

A: 1] Stock expected return below: Technology Stocks 20% Pharmaceutical Stocks 15% Utility Stocks 10%…

Q: now the following about your client’s fixed income portfolio. The portfolio is worth $1,600,000.…

A: Duration of bond shows how much the weighted period of the bond is required to recover all cash…

Q: Portfolio managers are frequently paid a proportion of the funds under management. Suppose you…

A: Variables in the question:a)Value of portfolio=$105 millionDividend yield=5.5%Annual fee of…

Q: Imagine you are a provider of portfolio insurance. You are establishing a 4-year program. The…

A: a. Portfolio insurance is a hedging method that is used to prevent portfolio losses when stock…

Q: Portfolio Return Year-to-date, Company O had earned a -7.6 percent return. During the same time…

A: Portfolio Return: Portfolio return is the weighted average return of securities which constitute the…

Q: You currently have $300,000. You want to invest it in the following three assets: 10-year US…

A: Treasury bonds refer to the securities on which a fixed rate of interest is to be paid every six…

Q: Consider a portfolio with expected annual return of 21.1% and volatility of 38%. Determine an…

A: Required:Compute the analytical Value at Risk for one month.

Q: Suppose you bought a bond with an annual coupon of 9 percent one year ago for $1,160. The bond sells…

A: Bonds are the instruments that represent the debt of an organization and are a type of debt…

Q: Calculate the actual portfolio​ return, rp​, for each of the 6 years. b. Calculate the expected…

A: Portfolio Return: A portfolio is the collection of financial insturment to diversify the financial…

Q: What is the final portfolio value if you invested $250,000 into a portfolio six years ago, and which…

A: Amount invested = $250,000Year 1 return = 4.95%Year 2 return = 9.05%Year 3 return = -2.25%Year 4…

Q: Suppose that a portfolio management company manages an investment fund. The fund manager observes a…

A: In this we have to find the price of bond at two levels.

Q: 1) When considering the investor's desired outcome, if you have generated very large returns in the…

A: Portfolio rebalancing is an portfolio manager's strategy in which they reviews the porfolio growth…

Q: The value of a portfolio increases from $100.394 million to $119.675 million over the year. What is…

A: Portfolio turnover rate tells us how many securities are sold or purchased during the period of…

Q: An ETF tracks an index that has enjoyed an 11% growth in the past year. If you bought the ETF and it…

A: In mutual funds there are many charges and fees to be paid due to which return on investment is…

Q: A fixed-income portfolio manager sets a minimum acceptable rate of return on the bond portfolio at…

A: Portfolio Value = $10 millionMinimum Acceptable rate = 4.4%No of years = 5One year later:Interest…

Q: Year-to-date, Yum Brands had earned a 4.90 percent return. During the same time period, Raytheon…

A: portfolio return = sum of (weight of company * return of company)

Q: You will have the cash to invest in Airtasker at the end of 2021 (t=0). Based on your forecasting,…

A: Calculation of future dividends Year Previous year dividend Growth rate Dividend   A B…

Q: You would like to know how much you need to save and invest monthly to have $1 million in your…

A: Future value is a financial term that refers to the value of an investment or asset at a specific…

Q: Assume the annual return for the lowest turnover portfolio is 18% and the annual return for the…

A: A portfolio consists of two or more than two stocks. A portfolio can also consist of different…

Q: You invest $1,017 portfolio holding a risky asset and a Treasury bill. You expect the portfolio to…

A: The weighted average value of the returns of each security will indicate the value of portfolio…

Q: You deposit $12,000 per year over 15 years in a stock portfolio. After that you do not make any…

A: Future value (FV) is a financial concept that represents the value of an investment or asset at a…

Q: You are managing a portfolio of $1 million. Your target duration is 10 years, and you can invest in…

A: Answer is given below Explanation:a)Duration of Perpetuity = (1+.07)/.07 = 15.2857 yearsSubstituting…

Q: You currently have $300,000. You want to invest it in the following three assets: 10-year US…

A: Portfolio Return, Risk, and Sharpe Ratio: The return on the portfolio is the weighted average return…

Q: You invest $1,028 portfolio holding a risky asset and a Treasury bill. You expect the portfolio to…

A: The weighted average value of the returns of each security will indicate the value of portfolio…

Q: with a probability of 95 %, what is the maximum amount that a $1 million portfolio is expected to…

A: Gather the Given Data- Initial Portfolio Value (PV): $1,000,000- Mean Annual Return (μ): 10% or…

Q: Year-to-date, Yum Brands had earned a 3.90 percent return. During the same time period, Raytheon…

A: Calculation of Portfolio Return:The portfolio return is 2.58%.Excel Spreadsheet:

Q: your retirement portfolio comprises 200 shares of the s&p 500 fund (SPY) and 100 shares of…

A: The question is based on the concept of calculation of rate of return on investment. The return can…

Q: Suppose we want to determine the expected return and standard deviation for a portfolio of assets A…

A: The question is based on calculation of risk and return for portfolio of two different asset class.…

Q: The estimated annual return I, of a hedge fund for the next 12 years is either 5%, 6%, 7.5% or 9%…

A: Please note that whether the annual return varies or remains constant for the entire 12 year period…

Q: Based on current dividend yields and expected capital gains, the expected rates of return on…

A: Here, Expected ReturnBetaStandard DeviationPortfolio A11%0.810%Portfolio B14%1.531%S&P…

Q: Year-to-date, Oracle had earned a -1.44 percent return. During the same time period, Valero Energy…

A: Portfolio return  = ( Weight 1 * Return 1) + ( weight 2 * Return 2) +...(weight n * Return n)

Q: are invested in stock A and the rest in stock B. What is the expected return on the portfolio of…

A: Given information :

Q: - 19.6% 16.2% 18.3% - 49.8% 43.7% 1.1% - 16.4% . What is the arithmetic average return over the…

A: Arithmetic average is simple average and can be obtained by adding and dividing by the total number.

Q: at is the expected return of your portfolic

A: Expected return of the portfolio equals the summation of the individual expected returns multiplied…

Q: At the beginning of the month, you owned $7,000 of News Corporation, $5,000 of First Data, and…

A: Portfolio return = Monthly return of News Corp x Weight of News Corp + Monthly return of First Data…

Q: has an expected return of 10 percent per year and Stock B has an expected return of 30 percent. If…

A: The portfolio refers to the combination of different securities. The securities can be stock, bonds,…

Q: If you have a portfolio made up of 30 percent Yum Brands, 30 percent Raytheon, and 40 percent…

A: To determine the portfolio return, the formula for the weighted average cost of capital (WACC) can…

Q: You are a provider of portfolio insurance and are establishing a four-year program. The portfolio…

A: Portfolio value = $70 million Minimum return = 10% Standard deviation = 25% T-bill = 6.2%