Annualized standard deviation of the portfolio

Assignment Help Finance Basics
Reference no: EM133070733

Use the 60 monthly returns from September 2016 to August 2021 of Johnson & Johnson (JNJ) and Goldman Sachs (GS).

(If the answer is 12.34%, then submit 12.34 instead of 0.1234 or 12.34%; you can download either raw data from Yahoo Finance or DJIA_RETURNS_211006_PIVOT.csv from Canvas.)

a. What is the annualized standard deviation of the portfolio that invests 67% to JNJ and 33% to GS?

b. Use Solver in Excel to find the JNJ-GS portfolio that has the minimum possible portfolio standard deviation. What is this portfolio's JNJ weight?

c. Use Solver in Excel to find the JNJ-GS portfolio that has the maximum possible Sharpe ratio-assume that the risk-free rate is zero. What is this portfolio's JNJ weight?

Reference no: EM133070733

Questions Cloud

Prefaced by langston hughes poem : The play is prefaced by a Langston Hughes poem. In what ways does the play illustrate the theme(s) of the poem?
What is the npv of the project : B. What is the NPV of the project? Answer in $ million, rounded up to two decimal places.
Prepare a Cash Budget for the quarter ending September : Cash Sales $75.000 Credit Sales $50.000 Receipts from Debtors $60.000 Wages paid $55.000. Prepare a Cash Budget for the quarter ending September
Estimate the modified durations of the bond : Please estimate the modified durations of the bond. Assume the coupon payment is made semiannually and the par value is $1,000.
Annualized standard deviation of the portfolio : Use the 60 monthly returns from September 2016 to August 2021 of Johnson & Johnson (JNJ) and Goldman Sachs (GS).
Define release plans : Define release plans. What purpose do they serve for those inmates who will be returning to society from prison and how are they implemented?"
Determine the sales revenue in the same market : 1. A European firm with operations in the United States offsets its U.S. operating costs with its sales revenue in the same market.
What would be the total overhead cost : Assume that 775 hours of machine hours are likely to be used in the month, what would be the total overhead cost based on the above calculations
What is booth additional funds needed : The Booth Company's sales are forecasted to double from $1,000 in 2019 to $2,000 in 2020. Here is the December 31, 2019, balance sheet:

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss the mechanism of the lac operon

1. Describe the three major stages of translation in eukaryotic cells.

  How much debt does the corporation have on its books

A balance sheet balances assets with their sources of debt and equity financing. If a corporation has assets equal to $5.2 million and a debt ratio of 75.0%, how much debt does the corporation have on its books?

  What happens to the profit maximizing output

Case Study: Competitive Markets. What happens to the profit maximizing output you produce if the rent on the land falls 25% to $60,000

  A bond with 4% coupon rate

1. A bond with 4% coupon rate (paid annually), 10 years to maturity, and $1000 face value.

  What is johnnys liquor cost of equity

Johnny's Liquor has a debt to equity ratio of 1.0, WACC of 14%, and a pretax cost of debt of 6%. Its tax rate is 40%

  What is the yield-to-maturity

What is the yield-to-maturity for a $10,000,000 91 day commercial paper issue that is currently priced at $9,985.365?

  When investing their savings for their childrens education

Describe any advantages or disadvantages of the relatively short-term maturities versus the longer-term maturities.

  Determine whether the information is given is consistent

Determine whether the information that is given is consistent

  What information would you solicit during the on-site visit

As part of a supplier evaluation effort, you are planning to visit a major supplier's facility. What would you do in preparation, and what information would you solicit during the on-site visit?

  What is the length of the annuity time period

The annuity pays $17,500 a year at an annual interest rate of 7.5 percent. What is the length of the annuity time period?

  Estimates regarding medicare

In the year 2000, the Congressional Budget Office offered the following estimates regarding Medicare (the U.S. government program that pays for part of the health costs of individuals who are permanently disabled or over 65 years old)

  Role of social responsibility in research

Describe in a short article the role of Social responsibility in research consisting 3-4 references and examples from finance.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd