What is portfolio jnj weight

Assignment Help Finance Basics
Reference no: EM133070008

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: EM133070008

Questions Cloud

Why are riskless zero-coupon bonds popular : Why are riskless zero-coupon bonds popular with investors?
Diversifiable and nondiversifiable risks : Diversifiable and Nondiversifiable Risks - In broad terms, why is some risk diversifiable? Why are some risks nondiversifiable?
Assignment on international finance : 1. A US-based firm has a contract which will see it receiving GBP 750,000 in 180-day. The firm typically does not hedge its transactions but the newly instated
Potential conflict between two areas : Context Themes 3 and 4 have reviewed the risk faced by banks and the operation of financial institutions against a background of minimising risk through regulat
What is portfolio jnj weight : Use the 60 monthly returns from September 2016 to August 2021 of Johnson & Johnson (JNJ) and Goldman Sachs (GS).
What is boris unleveraged beta : 1. Boris Corporation is financed with 0.14 percent debt and the rest equity. It has a leveraged beta of 0.9 and is subject to a 0.4 corporate tax rate.
What is the monthly payment on loan : 1) You have applied for an $180,000 mortgage to buy your first house. The bank is offering you a 30-year loan at 4.25 percent interest.
Find the arbitrage strategy : Suppose the price of the put option is $2, is there an arbitrage in the market? If so, find the arbitrage strategy and its resulting cash flows.
What is the value of the bond : The par value is GH¢1,000, and the bond has 5 years to maturity. The yield to maturity is 11%. What is the value of the bond?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the after tax cash flow from the sale of this asset

If the relevant tax rate is 35 percent, what is the after tax cash flow from the sale of this asset?

  Instead of employing capital markets research techniques

instead of employing capital markets research techniques e.g. event studies why dont we just ask investors how they

  Determine the weighted average cost of capital of a firm

Determine the weighted average cost of capital of a firm in a 30% tax bracket, with $50 million of debt financing and $100 million in common stock

  How many sales would a salaried rep need to make

How many sales would a salaried rep need to make in order to cover his/her salary? (see the excerpt from the case below) In both types, of sales calls.

  What will be the current value of a single share

Spacefood products will pay a dividend of $2.40 per share this year. It is expected that this dividend will grow by 3% per year each year in the future. What will be the current value of a single share of Spacefood's stock if the firm's equity cos..

  Participants in the wall street code

1. List all of the participants in the Wall Street Code documentary that seemed to have a negative opinion of high frequency trading.

  Explain the role of incoterms

Explain the importance of INCOTERMS 2015 in the chosen Organization. Explain the role of Incoterms and define 3 incoterms that places most of the risk

  Definition and use of currency options

Definition and use of Currency Options

  Stock investment decision

How can Stock Valuation help you in your stock investment decision?

  Tax-exempt securities

Do investors in high tax brackets or those in low tax brackets benefit more from tax-exempt securities?

  Examine the free cash flow to equity approach fcfe

mergers and acquisitionsplease respond to the followingdiscuss the concept of goodwill and the reason why balance

  What is the cost of equity after recapitalization

M&M and Taxes [LO2] In Problem 14, what is the cost of equity after recapitalization? What is the WACC? What are the implications for the fi rm's capital

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