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Equal-weighted Portfolios: Calculate the expected returns and standard deviations of the equal-weighted portfolio that invests...

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Finance

  1. Equal-weighted Portfolios: Calculate the expected returns and standard deviations of the equal-weighted portfolio that invests 50% and 50% in the two risky securities (S&P and Gold). What is its Sharpe Ratio?
S&P 500 Gold
Average Annual Return 9.38% 7.40%
Standard Deviation 16.41% 23.70%
Correlation 0.01095166

S&P 500 GOLD
Expected Portfolio Return (Rx) 9.38% 7.40%
Risk Free Rate (Rf) 4% 4%
Standard Deviation of Rx 16.41% 23.70%

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