Clark Lawson is a portfolio management at HCC (High Cost Capital), a passive management boutique. He has selected 5 equity ETFs and 5 bond ETFs to build oneSTOCK and and one BOND fund (shown in the table below). Please mark the only INCORRECT statement about the Equity and the BOND ETF funds. Round it toETFsWeight in PortfolioSECOND decimal caseEquitiesNTRN (Neutron) US equitiesGalaxy Global MSCI equitiesEmerging Asia ex-Japan stocksS&P Utilities and HealthcareSuper Tech digital sharesBondsUS bond universeUS investment grade ETFGlobal bonds ETFEurope High Yield ETFEmerging Market EMBI ETF22%20%25%11%22%15%25%15%25%20%Expected Return21.7%28.0%12.1%16.0%22.0%9.0%8.0%6.2%11.9%13.7%a. The expected return of a portfolio consisting of 50% of the Equity Fund and 50% of the Bond fund is 16.00%b. The beta of the Equity portfolio is 1.1000c. The expected returns of the equities and bond portfolios are 20.00% and 10.00%, respectivelyd. The duration of the Bond portfolio is 6.00 yearsBetaDuration1.2000.8001.2010.4041.5068.005.007.004.007.50

Variables in the question:Portfolio consists of 50% of the equity and 50% of the bond.

Clark Lawson is a portfolio management at HCC (High Cost Capital), a passive management boutique. He has selected 5 equity ETFS and 5 bond ETFs to build one STOCK and and one BOND fund (shown in the table below). Please mark the only INCORRECT statement about the Equity and the BOND ETF funds. Round it to ETFS Equities Weight in Portfolio NTRN (Neutron) US equities Galaxy Global MSCI equities Emerging Asia ex-Japan stocks S&P Utilities and Healthcare Super Tech digital shares Bonds SECOND decimal case US bond universe US investment grade ETF Global bonds ETF Europe High Yield ETF Emerging Market EMBI ETF 22% 20% 25% 11% 22% 15% 25% 15% 25% 20% Expected Return 21.7% 28.0% 12.1% 16.0% 22.0% 9.0% 8.0% 6.2% 11.9% 13.7% O a. The expected return of a portfolio consisting of 50% of the Equity Fund and 50% of the Bond fund is 16.00% O b. The beta of the Equity portfolio is 1.1000 O c. The expected returns of the equities and bond portfolios are 20.00% and 10.00%, respectively Od. The duration of the Bond portfolio is 6.00 years. Beta Duration 1.200 0.800 1.201 0.404 1.506 8.00 5.00 7.00 4.00 7.50

Clark Lawson is a portfolio management at HCC (High Cost Capital), a passive management boutique. He has selected 5 equity ETFS and 5 bond ETFs to build one STOCK and and one BOND fund (shown in the table below). Please mark the only INCORRECT statement about the Equity and the BOND ETF funds. Round it to ETFS Equities Weight in Portfolio NTRN (Neutron) US equities Galaxy Global MSCI equities Emerging Asia ex-Japan stocks S&P Utilities and Healthcare Super Tech digital shares Bonds SECOND decimal case US bond universe US investment grade ETF Global bonds ETF Europe High Yield ETF Emerging Market EMBI ETF 22% 20% 25% 11% 22% 15% 25% 15% 25% 20% Expected Return 21.7% 28.0% 12.1% 16.0% 22.0% 9.0% 8.0% 6.2% 11.9% 13.7% O a. The expected return of a portfolio consisting of 50% of the Equity Fund and 50% of the Bond fund is 16.00% O b. The beta of the Equity portfolio is 1.1000 O c. The expected returns of the equities and bond portfolios are 20.00% and 10.00%, respectively Od. The duration of the Bond portfolio is 6.00 years. Beta Duration 1.200 0.800 1.201 0.404 1.506 8.00 5.00 7.00 4.00 7.50

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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