C. Portfolio R is highAsset Class Return for Year X (%)Asset Allocation (%)Asset Class20.08.0Large-cap US equitiesSmall-cap US equities40.012.0Emerging market equities25.0-3.0High-yield bonds15.04.0The portfolio return for Year X is closest to:A. 5.1%.B. 5.3%.C. 6.3%.TL

Data given:: Asset Class Asset Allocation(%) Asset Class Return for year X(%) Large cap…

savings in the asset С. 4. At the beginning of Year X, an investor allocated his reti Asset Class Return for Year X (%). Asset Allocation (%) Asset Class 20.0 8.0 Large-cap US equities Small-cap US equities 40.0 12.0 25.0 how loe -3.0 Emerging market equities High-yield bonds 15.0 4.0 The portfolio return for Year X is closest to: А. 5.1%. В. 5.3%. С. 6.3%.

savings in the asset С. 4. At the beginning of Year X, an investor allocated his reti Asset Class Return for Year X (%). Asset Allocation (%) Asset Class 20.0 8.0 Large-cap US equities Small-cap US equities 40.0 12.0 25.0 how loe -3.0 Emerging market equities High-yield bonds 15.0 4.0 The portfolio return for Year X is closest to: А. 5.1%. В. 5.3%. С. 6.3%.

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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Capital Asset Pricing Model (CAPM) - Based on Market Risk Premium Risk free rate (Rf)* 3.00% Beta (B)* Market risk premium* Expected return (ER) 1.50 10.00%
(c)) Discuss the following graphic, which shows the relationship between expected return and portfolio weights. The portfolio is comprised of a debt security D and an equity security E. What would the portfolio strategy be when Wp = 2 and ba WE = -1? 38 (33) -0.5 Expected Return 13% 8% Debt Fund 0 (ebenso) esenicut adol leu@ ledol (loorba (ognerloxel) Ismet tametnl Equity Fund 1.0 0 OC) becida nieu to 2.0 w (stocks) AB -1.0 68 XO.YOUTS RO w (bonds)=1-w (stocks) 15 V10 anollesup Figure 7.3 Portfolio expected return as a function of investment proportions la 21101TO
The following data are gathered for:· The real risk-free rate is 1.25%· Inflation premium is constant at 2.50%· Default risk premium is 5%· Liquidity risk premium is 0.50% What is the quoted rate on a short-term government security?
The following portfolio has an expected return of Security XYZ O 10.87; 1.08 O 10.87: 1.11 11.03; 1.07 O 11.03; 1.10 O 11.11; 1.09 Amount Invested $12,000 18,000 10,000 Expected Return 16.7% 7.8 94 percent and a beta of Beta 1.42 88 1.02
Subject name: Principles of Insurance and Risk Management, Answer it fast please.
1. What is your expected portfolio return of an investment portfolio with a 60/40 allocation of stocks and bonds, respectively, if you expect long term equities to return 8%, and long term bonds to return 2%? 5.6% 6.2% 4.8% 5.1% 2. You are looking into developing your first investment portfolio. After assessing your risk tolerance, you believe that an 90/10 allocation of stocks and bonds, respectively, is where you want to begin. You believe that 7% is what stocks will return over the next ten years, and 4% is what you expect to return in your bond portfolio. If you invest $300/month for the next ten years, what will your portfolio be worth? $51,077 $47,579 $52,843 $44,880
Data are given as follows: (all the values are in percent) Month Average portfolio return market Average Average risk-free return rate 2.464 3.360 0.090 16.130 2.348 0.090 0.771 -1.484 0.120 -6.386 -2.437 0.120 15 -2.861 1.965 0.090 16 -7.673 2.806 0.120 0.805 -5.721 0.150 -0.372 0.327 0.150 1.508 2.464 0.150 10 2.003 2.250 0.150 11 -4.723 6.639 0.210 12 Calculate Treynor measure, Sharpe ratio, tracking error, information ratio, and hit ratio. Then, evaluate the performance of this portfolio. 2.383 4.874 0.210
Please solve ii
8. A portfolio consists of bonds, stocks, commodities and real estates. The portfolio weightings, expected returns, variances and correlation matrix are shown below. Weight Expected Return Variance (%2) Bonds 50% 10% 15% 25% 8% 12% 20% 16% 10 30 15 20 0.1 0.3 0.4 0.6 1.0 0.2 1.0 Stocks Commodities Real Estate Correlation Matrix Bonds 1.0 -0.2 1.0 Stocks Commodities Real Estate Bonds Stocks Commodities Real Estate Calculate the standard deviation of the return of the portfolio.
FIGURE 6.14 One-fund theorem. When both borrowing and lending at the risk-free rate are allowed, there is a unique fund F of risky assets that is efficient. All points on the efficient frontier are combinations of F and the risk-free asset. The information concerning the 1-year covariances and mean values of the rates of return on five risky securities (assets) is shown in the table below. Security Covariance V 2.30 93 .62 74 15.1 -23 26 -27 -56 2 56 12.5 93 62 1.40 22 22 56 1.80 .78 -27 78 3.40 -56 14.7 9.02 17.68 4 74 - 23 26 2.60 The mean values in the column labeled F are expressed on a percentage basis, whereas the covariances are expressed in units of (percent)? / 100. For example, the first security has an expected rate of return of 15.1%, or 0.151, and a variance of return of 0.023. And the covariance between security 1 and security 2 is 0.0093, while the covariance between security 1 and security 3 is 0.0062. Assume there is also a risk-free asset with r; = 10%. The one-fund…
The rate of return on which one of the following has a risk premium of 0%? Multiple Choice Long-term government bonds Long-term corporate bonds Intermediate-term government bonds U.S. Treasury bills Large-company stocks
ques 11

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