You are working as a portfolio associate and your manager assigned task to find out which investment option is feasible for existing portfolio. All of the investment options are riskier than market however still manager wants to optimize its risk in given investment options. Requirements: Calculate Average of each of the investment option. Calculate the Risk of each of the investment option. Calculate the Co-efficient of Variation of each investment option. Calculation of correlation each of the investment option. Calculate Beta of each of the investment option. Give your conclusion or recommendation which investment option is best for you in comparison to least risky.
You are working as a portfolio associate and your manager assigned task to find out which investment option is feasible for existing portfolio. All of the investment options are riskier than market however still manager wants to optimize its risk in given investment options. Requirements: Calculate Average of each of the investment option. Calculate the Risk of each of the investment option. Calculate the Co-efficient of Variation of each investment option. Calculation of correlation each of the investment option. Calculate Beta of each of the investment option. Give your conclusion or recommendation which investment option is best for you in comparison to least risky.
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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Question
You are working as a portfolio associate and your manager assigned task to find out which investment option is feasible for existing portfolio. All of the investment options are riskier than market however still manager wants to optimize its risk in given investment options.
Requirements:
- Calculate Average of each of the investment option.
- Calculate the Risk of each of the investment option.
- Calculate the Co-efficient of Variation of each investment option.
- Calculation of correlation each of the investment option.
- Calculate Beta of each of the investment option.
- Give your conclusion or recommendation which investment option is best for you in comparison to least risky.
Transcribed Image Text:Years
Market
A
D
1
39,400.00
70.00
15.00
10.00
51.50
2
39,800.00
7LO0
15.00
10.50
51.80
3
39,900.00
7L80
16.00
11.20
5140
4
40,110.00
7150
17.00
10.80
52.00
40,500.00
72.00
16.00
10.50
52.50
6
40,400.00
7215
16.00
10.90
53.00
7
40,500.00
72.80
16.00
11.10
52.40
40,200.00
7L50
16.00
11.20
52.10
9
40,150.00
7L.30
15.00
10.80
53.50
10
40,500.00
7L90
17.00
11.00
53.20
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