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Mr. Yamcie Oliva considers investing his PHP 100,000 wealth into two assets: SM Prime Holdings Inc. (SMPH) and Jollibee Foods Corp. His friend, Ms. Julie-Anne Ilquin, a financial analyst who works at JD Morguens, suggests partitioning his wealth by investing 70% of it in the stock that has a higher average daily rate of return, and the remaining 30% be invested in the other asset. Mr. Oliva has the following data points of the historical prices for day x=0,1,2,..., 8, HP, of SMPH and JFC: Dayx 0 1 2 3 4 5 6 7 8 9 SMPH 36.4 35.5 36 35.95 35.9 36.85 JFC 245.2 245.8 249.2 249 245 244.6 37.5 248 37.05 245.4 36.6 243.8 36.9 245 a. Mr. Oliva wishes to calculate the daily rate of return R(x) for days x=1,2,..., 9 using the following formula: R(x) = HP-HP-1 HP-1 Generate a table showing the daliy rate of return for both assets. b. It is known that the average daily rate of return can be calculated by solving the following definite integral: J 12 R(x)dx, where a is the maximum number of days you observed the historical prices. Use Romberg integration to approximate the average daily rate of return separately for both assets as accurately as possible. c. To which stock should the 70% of wealth be allocated?

Mr. Yamcie Oliva considers investing his PHP 100,000 wealth into two assets: SM Prime Holdings Inc. (SMPH) and Jollibee Foods Corp. His friend, Ms. Julie-Anne Ilquin, a financial analyst who works at JD Morguens, suggests partitioning his wealth by investing 70% of it in the stock that has a higher average daily rate of return, and the remaining 30% be invested in the other asset. Mr. Oliva has the following data points of the historical prices for day x=0,1,2,..., 8, HP, of SMPH and JFC: Dayx 0 1 2 3 4 5 6 7 8 9 SMPH 36.4 35.5 36 35.95 35.9 36.85 JFC 245.2 245.8 249.2 249 245 244.6 37.5 248 37.05 245.4 36.6 243.8 36.9 245 a. Mr. Oliva wishes to calculate the daily rate of return R(x) for days x=1,2,..., 9 using the following formula: R(x) = HP-HP-1 HP-1 Generate a table showing the daliy rate of return for both assets. b. It is known that the average daily rate of return can be calculated by solving the following definite integral: J 12 R(x)dx, where a is the maximum number of days you observed the historical prices. Use Romberg integration to approximate the average daily rate of return separately for both assets as accurately as possible. c. To which stock should the 70% of wealth be allocated?

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Please answer letter b and c
Mr. Yamcie Oliva considers investing his PHP 100,000 wealth into two assets: SM Prime Holdings Inc. (SMPH) and Jollibee Foods Corp. His friend, Ms. Julie-Anne Ilquin, a financial analyst who works at JD Morguens, suggests partitioning his wealth by investing 70% of it in the stock that has a higher average daily rate of return, and the remaining 30% be invested in the other asset. Mr. Oliva has the following data points of the historical prices for day x= 0, 1,2, ..., 8, HP,, of SMPH and JFC: SMPH| JFC 36.4 245.2 Day x 35.5 245.8 36 249.2 35.95 249 4 35.9 245 36.85 244.6 37.5 248 37.05 245.4 36.6 243.8 9. 36.9 245 a. Mr. Oliva wishes to calculate the daily rate of return R(x) for days x = 1,2, ..,9 using the following formula: HP, – HP,-1 R(x) : HPx-1 Generate a table showing the daliy rate of return for both assets. b. It is known that the average daily rate of return can be calculated by solving the following definite integral: R(x)dx, where a is the maximum number of days you observed the historical prices. Use Romberg integration to approximate the average daily rate of return separately for both assets as accurately as possible. c. To which stock should the 70% of wealth be allocated?
Transcribed Image Text:Mr. Yamcie Oliva considers investing his PHP 100,000 wealth into two assets: SM Prime Holdings Inc. (SMPH) and Jollibee Foods Corp. His friend, Ms. Julie-Anne Ilquin, a financial analyst who works at JD Morguens, suggests partitioning his wealth by investing 70% of it in the stock that has a higher average daily rate of return, and the remaining 30% be invested in the other asset. Mr. Oliva has the following data points of the historical prices for day x= 0, 1,2, ..., 8, HP,, of SMPH and JFC: SMPH| JFC 36.4 245.2 Day x 35.5 245.8 36 249.2 35.95 249 4 35.9 245 36.85 244.6 37.5 248 37.05 245.4 36.6 243.8 9. 36.9 245 a. Mr. Oliva wishes to calculate the daily rate of return R(x) for days x = 1,2, ..,9 using the following formula: HP, – HP,-1 R(x) : HPx-1 Generate a table showing the daliy rate of return for both assets. b. It is known that the average daily rate of return can be calculated by solving the following definite integral: R(x)dx, where a is the maximum number of days you observed the historical prices. Use Romberg integration to approximate the average daily rate of return separately for both assets as accurately as possible. c. To which stock should the 70% of wealth be allocated?
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