PLEASE LEAVE IN DECIMAL FORM & SHOW WORK THANK YOU
AVERAGES
sp500 A B Average -0.0069
0.0018
0.0015
covariance matrix:
Sp500 A B Sp500 0.00336 A 0.00322 0.0041 B 0.0044 0.00514 0.00824
1. For a portfolio formed by 40% in the SP500 and 60% in A. Calculate the return on the portfolio.
2. Using the covariance matrix from question 7, calculate the variance of the portfolio formed by 40% in the SP500 and 60% in A.
3. Using the variance from question 8, calculate the standard deviation of the portfolio formed by 40% in the SP500 and 60% in A.
4. Using the averages from question 7, calculate the average of a portfolio formed by 30% in A and 70% in B.
5. Using the covariance matrix from question 7, calculate the variance of a portfolio formed by 30% in A and 70% in B.
6. Using the variance from question 12, calculate the standard deviation for the portfolio formed by 30% in A and 70% in B.
PLEASE LEAVE IN DECIMAL FORM & SHOW WORK THANK YOU
AVERAGES
| sp500 | A | B | |
| Average | -0.0069 | 0.0018 | 0.0015 |
covariance matrix:
| Sp500 | A | B | |
| Sp500 | 0.00336 | ||
| A | 0.00322 | 0.0041 | |
| B | 0.0044 | 0.00514 | 0.00824 |
1. For a portfolio formed by 40% in the SP500 and 60% in A. Calculate the return on the portfolio.
2. Using the covariance matrix from question 7, calculate the variance of the portfolio formed by 40% in the SP500 and 60% in A.
3. Using the variance from question 8, calculate the standard deviation of the portfolio formed by 40% in the SP500 and 60% in A.
4. Using the averages from question 7, calculate the average of a portfolio formed by 30% in A and 70% in B.
5. Using the covariance matrix from question 7, calculate the variance of a portfolio formed by 30% in A and 70% in B.
6. Using the variance from question 12, calculate the standard deviation for the portfolio formed by 30% in A and 70% in B.
Related questions
For the questions, use the following averages and covariance matrix. PLEASE HELP ASAP!
Averages
| Asset | 1 | 2 | 3 |
| Returns | 0.25 | 0.12 | 0.08 |
covariance matrix
| Asset 1 | Asset 2 | Asset 3 | ||
| Asset 1 | 0.4 | -0.1 | 0.2 | |
| Asset 2 | -0.1 | 0.7 | 0.3 | |
| Asset 3 | 0.2 | 0.3 | 0.9 |
1.) For a portfolio formed by 30% in asset 2 and 70% in asset 3. Calculate the return on the portfolio.
2.) Calculate the variance of the portfolio formed by 30% in asset 2 and 70% in asset 3.
3.) Using the variance from question 3b, calculate the standard deviation of the portfolio formed by 30% in asset 2 and 70% in asset 3.
4.) Using the average and standard deviation from previous questions, calculate the Sharpe ratio for the portfolio formed by 30% in asset 2 and 70% in asset 3.
5.) Calculate the average of a portfolio formed by 35% in asset 1 and 65% in asset 2.
6.) Calculate the variance of a portfolio formed by 35% in asset 1 and 65% in asset 2.
7.) Using the variance from question 3f, calculate the standard deviation for the portfolio formed by 35% in asset 1 and 65% in asset 2.
8.) Using the average and standard deviation from previous questions, calculate the Sharpe ratio for the portfolio formed by 35% in asset 1 and 65% in asset 2.
9.) Which of the portfolios offer greater return per unit of risk taken?
a. The portfolio formed by 30% in asset 2 and 70% in asset 3
b. The portfolio formed by 35% in asset 1 and 65% in asset 2
c. Both give the same return per unit of risk
Averages
| Asset | 1 | 2 | 3 |
| Returns | 0.25 | 0.12 | 0.08 |
covariance matrix
| Asset 1 | Asset 2 | Asset 3 | ||
| Asset 1 | 0.4 | -0.1 | 0.2 | |
| Asset 2 | -0.1 | 0.7 | 0.3 | |
| Asset 3 | 0.2 | 0.3 | 0.9 |
1.) For a portfolio formed by 30% in asset 2 and 70% in asset 3. Calculate the return on the portfolio.
2.) Calculate the variance of the portfolio formed by 30% in asset 2 and 70% in asset 3.
3.) Using the variance from question 3b, calculate the standard deviation of the portfolio formed by 30% in asset 2 and 70% in asset 3.
4.) Using the average and standard deviation from previous questions, calculate the Sharpe ratio for the portfolio formed by 30% in asset 2 and 70% in asset 3.
5.) Calculate the average of a portfolio formed by 35% in asset 1 and 65% in asset 2.
For the questions, use the following averages and covariance matrix. PLEASE HELP ASAP! ROUND to 2 decimal places
EQUATION NEEDED FOR 8)=
Sharpe ratio for the portfolio = (Return on the portfolio-Risk Free Rate/standard deviation of the portfolio
Averages
| Asset | 1 | 2 | 3 |
| Returns | 0.25 | 0.12 | 0.08 |
covariance matrix
| Asset 1 | Asset 2 | Asset 3 | ||
| Asset 1 | 0.4 | -0.1 | 0.2 | |
| Asset 2 | -0.1 | 0.7 | 0.3 | |
| Asset 3 | 0.2 | 0.3 | 0.9 |
5.) Calculate the average of a portfolio formed by 35% in asset 1 and 65% in asset 2.
6.) Calculate the variance of a portfolio formed by 35% in asset 1 and 65% in asset 2.
7.) Using the variance from question 6, calculate the standard deviation for the portfolio formed by 35% in asset 1 and 65% in asset 2.
8.) Using the average and standard deviation from previous questions, calculate the Sharpe ratio for the portfolio formed by 35% in asset 1 and 65% in asset 2.
9.) Which of the portfolios offer greater return per unit of risk taken?
a. The portfolio formed by 30% in asset 2 and 70% in asset 3
b. The portfolio formed by 35% in asset 1 and 65% in asset 2
c. Both give the same return per unit of risk
