Solution-Perform the necessary calculations on each asset

Perform the necessary calculations on each asset

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Reference no: EM133075450

Question - Expected return - Assume that you are an investment consultant. You have been asked for your advice in selecting a portfolio of assets. The following data has been given to you:

Year	Asset X	Asset Y	Asset Z
2018	12%	18%	12%
2019	16%	16%	16%
2020	18%	12%	18%

You have been asked to create two portfolios, one consisting of assets X and Y, and the other consisting of assets X and Z, by investing equal proportions (50%) in each of the two component assets.

Required - 1. In order to provide your advice in selecting a portfolio of assets, perform the necessary calculations on each asset (i.e. Assets X, Y and Z), and on the two portfolios (i.e. Portfolio XY and Portfolio XZ).

2. In reference to your findings in part (a), recommend the preferred portfolio to invest in. Justify your recommendation clearly and in detail.

Reference no: EM133075450

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Perform the necessary calculations on each asset

Reference no: EM133075450

Reference no: EM133075450

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