Expected Avarage Return optimal investment portfolio in the risky ...
90.2K
Verified Solution
Link Copied!
Question
Finance
Expected Avarage Return
optimal investment portfolio in the risky
Weight
PG
0.010848
PG
x
Microsoft
0.014854
Microsoft
x
BAC
0.011589
BAC
x
Exxon
0.012043
Exxon
x
Risk free asset
.02
1.000000
Variance
E[r]
x
PG
0.004478
Portfolio Variance
x
Microsoft
0.012820
Std Dev
x
BAC
0.005611
Sharp
x
Exxon
0.002820
Covariance
Cov(PG, Microsoft)
-0.000649
Cov(PG, BAC)
0.000683
Cov(PG, Exxon)
0.000433
Cov(Microsoft, BAC)
0.001681
Cov(Microsoft, Exxon)
0.000804
Cov(BAC, Exxon)
0.000757
I think this is done in excel. how to find optimal investment portfolio in the risky? Thanks
For questions (b), (c), and (d), we assume that investors invest in the risk-free asset and 4 risky assets (PG, Microsoft, BAC, and Exxon). (b) Find the optimal investment portfolio in the risky assets. What are the mean and s.d. of the returns of this portfolio
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
