Calculate the portfolio return over the four year period

Assignment Help Financial Management

Reference no: EM131876008

You have been given the following return? data,

Expected Return

Year Asset F Asset G Asset H

2018 18% 19% 16%

2019 19% 18% 17%

2020 20% 17% 18%

2021 21% 16% 19%

on three assets -F, G, and H—overthe period 2018–2021.

Using these assets, you have isolated three investment alternatives:

Alternative Investment

1 100% of asset F

2 55% of asset F and 45% of asset G

3 55% of asset F and 45% of asset H

a. Calculate the portfolio return over the 4-year period for each of the three alternatives.

b. Calculate the standard deviation of returns over the 4-year period for each of the three alternatives.

c. On the basis of your findings in parts a and

b. which of the three investment alternatives would you recommend Why?

Reference no: EM131876008

Questions Cloud

Determination of futures prices : Determination of Futures Prices. what is your index arbitrage strategy?

What is alvin tax basis in his new building : Alvin owned a building located in Kansas that he rented to a local business. What is Alvin's tax basis in his new building

What rate of return will be earned by an investor : What rate of return will be earned by an investor who purchases the bond for $627.73 and holds it for 1 year.

Find the standard hours allowed for actual production : The denominator activity for the year was based on budgeted production of 200,000 units. The standard hours allowed for actual production for the year total

Calculate the portfolio return over the four year period : Calculate the portfolio return over the 4-year period for each of the three alternatives.

What role does technology play in the design of work systems : What are the critical factors to consider in the design of a work system? What role does technology play in the design of work systems?

How much is coyote corporation taxable income : Coyote owns 5% of Roadrunner Corporation's stock. How much is Coyote Corporation's taxable income (loss) for the year

Discuss training shift leaders in the use of barcode readers : Discuss Training shift leaders in the use of barcode readers and Provide barcode training manuals for shift leaders to use in training their teams.

What is the total cost of building picture frames : What is the total cost of building 8 picture frames by a new employee using the cumulative average-time method? You may use an index of -0.1520

User Account

All Pages