David established an investment portfolio of two blue chips four years ago:  Gold share and Silver Bond. Gold share accounts for 65% of his investment portfolio.   Required: If David’s portfolio has provided the returns of 9.5%, 11.3%, - 12.5% and 15.6% over the past four years, respectively. Calculate geometric average return of the portfolio for this period? Assume that the below data is available for David’s portfolio performance, calculate the expected return, variance and standard deviation of the portfolio.   Gold Share Silver Bond Expected return 26.5% 10.5% Standard Deviation of return 6% 2% Correlation of coefficient (p) 0.55 Assume that expected return of the Gold share in David’s portfolio is 14.5%. The share’s beta coefficient is 1.5. Market risk premium is 7.5. Calculate the risk-free rate using Capital Asset Pricing Model Assume that David bought 2000 of Gold shares in his portfolio for a price of $75 each, the dividend paid for this stock is $7/stock each year. The current market price of this share is $135. Calculate the capital gain yield of this investment after four years

Your portfolio had the values in the following table for the four years​ listed: Data table ​(Click on the icon here    in order to copy its contents of the data table below into a​ spreadsheet.)     Beginning Value Ending Value 2016 ​$59,462   ​$55,536   2017 55,536   64,852   2018 64,852   67,183   2019 67,183   70,997 . a. Calculate your return for each year over the​ 4-year period. Then calculate the average return over the​ 4-year period. b. Calculate the portfolio standard deviation.       Question content area bottom Part 1 The return for 2016 is enter your response here​%. ​ (Round to two decimal​ places.)

Ebenezer Scrooge has invested 65% of his money in share A and the remainder in share B. He assesses their prospects as follows:   A   B Expected return (%) 16   21 Standard deviation (%) 23   27 Correlation between returns   0.5   What are the expected return and standard deviation of returns on his portfolio? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. How would your answer change if the correlation coefficient were 0 or −0.50? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Is Mr. Scrooge’s portfolio better or worse than one invested entirely in share A, or is it not possible to say?

Chee Chew's portfolio has a beta of 1.25 and earned a return of 13.6% during the year just ended. The risk-free rate is currently 3.9%. The return on the market portfolio during the year just ended was 10.7%. a. Calculate Jensen's measure (Jensen's alpha) for Chee's portfolio for the year just ended. b. Compare the performance of Chee's portfolio found in part a to that of Carri Uhl's portfolio, which has a Jensen's measure of -0.19. Which portfolio performed better? Explain. c. Use your findings in part a to discuss the performance of Chee's portfolio during the period just ended. a. The Jensen's measure (Jensen's alpha) for Chee's portfolio is (Round to two decimal places.) (…)

Portfolio rebalancing is the process of bringing your different asset classes (stocks, bonds, and cash) back into proper relationship following a significant change in the value of one or more of them. You should monitor your investments and normally rebalance your portfolio about once a year to return your investments to their proper balance when they no longer conform to your investment plan. Suppose that you begin an investment program with a portfolio having an asset allocation of 30% bonds, 60% equities, and 10% cash investments. One year later, you find that some investments have performed better than others. After a year, the portfolio now consists of 40% bonds, 40% equities, and 20% cash investments. To rebalance this portfolio back to its original asset allocation, you should sell some of your     and use the proceeds to purchase additional     .

Your portfolio allocates equal funds to DW Company and Woodpecker, Incorporated. DW Company stock has an annual return mean and standard deviation of 15.5 percent and 44 percent, respectively. Woodpecker stock has an annual return mean and standard deviation of 12.6 percent and 44 percent, respectively. The return correlation between DW and Woodpecker is zero. What is the smallest expected loss for your portfolio in the coming month with a probability of 16 percent? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places. X Answer is complete but not entirely correct. Smallest expected loss -20.43 × %

Leon has in his investment a portfolio that paid him the rate of returns of 14 %, -13%, 15.6%, 17% and 19.5% over the past five years. Required: a)Calculate the arithmetic average return (AAR) and geometric average return (GAR) of the portfolio? If someone asks you what is the actual compounding rate of return of Leon’s portfolio over the past five year, which one (AAR or GAR) will be a better answer?  b)Following is forecast for economic situation and Leon’s portfolio returns next year, calculate the expected return, variance and standard deviation of the portfolio.    State of economy Probability Rate of returns Mild Recession 0.25 -2.5% Normal 0.45 13.5% Growth 0.30 20%   c)         Assume that expected return of the stock A in Leon’s portfolio is 13.2%. Beta of this stock is 1.2, risk free rate is 3.5%. Calculate market portfolio rate of return, which is used to compute the expected return of this stock by Capital Asset Pricing Model (CAPM)?