Pick one of the three major bond indexes, and do some Internet research to identify the performance of the index during the last 24 months and any possible explanations for that performance.
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Pick one of the three major bond indexes, and do some Internet research to identify the performance of the index during the last 24 months and any possible explanations for that performance.
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- With close reference to the efficient market hypothesis (EMH) literature and by using relevant empirical evidence of data and graphical analysis of stock prices and daily stock returns, for a selected 90-day period, critically assess the” efficiency” of London Stock Exchange (LSE) market in recent years. Explain the implications of your results.You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns: Year r ̄A r ̄B 2014 -20.00% -5.00% 2016 42.00 15.00 2017 20.00 -13.00 2018 -8.00 50.00 2019 25.00 12.00 Calculate the average rate of return for each stock during the 5-year period. Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Calculate the standard deviation of returns for each stock and for the portfolio. Suppose you are a risk-averse investor. Assuming Stocks A and B are your only choices, would you prefer to hold Stock A, Stock B,…You already submitted an Investment Proposal. The second part of your Investment Project is a follow-up of your Investment Proposal, with a short reflection essay about the securities you recommended in your Investment proposal. You have to provide an updated Table showing your portfolio. Make sure to include the gain or losses of each individual securities, your total holding-period return, and the effective annual rate (EAR). You should include in the analysis at least one of the securities you recommended to buy in your first report. How did it go? Did it go as planned? Why do you think it did not go as planned? You may also analyze some of your winners and losers in your portfolio (they could be others than the ones you justified in the first report). Any regrets? What would you have done differently after what you have learned in this course? There is no unique way to do a reflection essay. What are in your opinion the essential lessons from this course? The length of the…
- Use the investment opportunity set and data shown on the excel file attached. What will be the Weight of Bonds in the Optimum Portfolio, given this investment opportunity set? Round to two decimals. for example, 0.12What is the stand-alone risk? Use the scenario data to calculate the standard deviation of the bonds return for the next year.For the fourth discussion question of the quarter, we are going to examine a few bonds and determine which seems like the best investment for us. Information about bond price (assume all have a face value of $1,000), maturity date, coupon rate, analyst ratings, and pay dates will be given. Based on the description of the bonds provided, I would like for you to discuss which investment was the most appealing to you from the perspective of a potential investor and why you felt that way. As it is likely that there will many different companies chosen by different members of the class, please feel free to discuss and debate with your colleagues about areas of agreement and disagreement with your selections for your required follow-up responses. Bond #4 $1391.66 08/2032 6.75% BBB Last Price Maturity Coupon Rate Analyst Rating Industry Pay Dates Bond #1 $1255.12 10/2029 3.75% AAA Pharmaceutical Apr & Oct Bond #2 $1001.10 05/2048 4.00% AAA Travel/Tourism May & Nov Bond #3 $801.00 01/2035 0%…
- You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns: Year 2015 -22.00 % -4.00 % 2016 34.00 17.00 2017 29.00 -15.00 2018 -2.00 46.00 2019 30.00 25.00 Calculate the average rate of return for each stock during the 5-year period. Do not round intermediate calculations. Round your answers to two decimal places. Stock A: % Stock B: % Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be indicated by a minus sign. Year Portfolio 2015 % 2016 % 2017 % 2018 % 2019 % Average return %You have developed data which give (1) the average annual returns of the market for the past five years and (2) similar information on Stocks A and B. If these data are as follows, which of the possible answers best describes the historical beta for A and B? Please circle the correct answer: Years Market Stock A Stock B 1 .03 .16 .05 2 -.05 .20 .05 3 .01 .18 .05 4 -.10 .25 .05 5 .06 .14 .05 a. bA > 0; bB = 1. b. bA > +1; bB = 0. c. bA = 0; bB = -1. d. bA < 0; bB = 0. e. bA < -1; bB = 1.You plan to simulate a portfolio of investments over a multiyear period, so for each investment (which could be a particular stock or bond, for example), you need to simulate the change in its value for each of the years. How would you simulate these changes in a realistic way? Would you base it on historical data? What about correlations? Do you think the changes for different investments in a particular year would be correlated? Do you think changes for a particular investment in different years would be correlated? Do you think correlations would play a significant role in your simulation in terms of realism?
- answer in text form please (without image)Fund F has been investing in stocks and bonds. You are evaluating the performance of Fund F by comparing its performance with the performance of an appropriate benchmark portfolio B. The performance and weights of F and B over the last year are given in the table below: Asset Class Weight in F Weight in B 0.6 Stocks 0.5 Bonds 0.5 Attribute the performance of Fund F against benchmark portfolio B in the stock class. What is the attribution due to the asset allocation in the stock class? What is the attribution due to the security selection in the stock class? 0.4 Return from F O a. -0.005, -0.008 O b. 0.003; 0.004 O c. 0.012, 0.008 O d. 0.008; 0.012 10% Return from B 3% 8% 5%Assume these are the stock market and Treasury bill returns for a 5-year period: Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
