if you have the financial data for two portfolios as follows: The first portfolio of the United Company consists of three assets distributed as follows, (33,000), (19000), (28000) and the returns on the first investment amounted to (-0.20, 0.40, 0.50) and the return on the second investment was (-0.15, 0.30, 0.60) and the return on investment The third is (-0.10, 0.60,0.40) and the probability of occurrence for all investments is (10%, 60%, 30%) and the degree of correlation is (65%). The second portfolio of the National Company, which included three assets (44000), (86000), (65000) and a correlation degree of (70%) and that the probability of occurrence for all investments was (40%, 10%, 50%) and the returns on the first investment amounted to (-0.25, 0.43,0.37). And the return on the second investment (-0.30,0.60,0.40) and the return on the third investment (-0.1 5,0.45, ,0.50) 1. Find the risk of a portfolio using (portfolio variance)? 2. As an investor and assuming equal returns in any portfolio, your investment decision will be 9:23
if you have the financial data for two portfolios as follows: The first portfolio of the United Company consists of three assets distributed as follows, (33,000), (19000), (28000) and the returns on the first investment amounted to (-0.20, 0.40, 0.50) and the return on the second investment was (-0.15, 0.30, 0.60) and the return on investment The third is (-0.10, 0.60,0.40) and the probability of occurrence for all investments is (10%, 60%, 30%) and the degree of correlation is (65%). The second portfolio of the National Company, which included three assets (44000), (86000), (65000) and a correlation degree of (70%) and that the probability of occurrence for all investments was (40%, 10%, 50%) and the returns on the first investment amounted to (-0.25, 0.43,0.37). And the return on the second investment (-0.30,0.60,0.40) and the return on the third investment (-0.1 5,0.45, ,0.50) 1. Find the risk of a portfolio using (portfolio variance)? 2. As an investor and assuming equal returns in any portfolio, your investment decision will be 9:23
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:if you have the financial data for two
portfolios as follows:
The first portfolio of the United Company
consists of three assets distributed
as follows, (33,000), (19000), (28000)
and the returns on the first investment
amounted to (-0.20, 0.40, 0.50) and the
return on the second investment was
(-0.15, 0.30, 0.60) and the return on
investment The third is (-0.10, 0.60,0.40)
and the probability of occurrence for all
investments is (10%, 60%, 30%) and the
degree of correlation is (65%).
The second portfolio of the National
Company, which included three assets
(44000), (86000), (65000) and a
correlation degree of (70%) and that
the probability of occurrence for all
investments was (40%, 10%, 50%) and the
returns on the first investment amounted
to (-0.25, 0.43,0.37). And the return on the
second investment (-0.30,0.60,0.40) and
the return on the third investment (-0.1
5,0.45, ,0.50)
1. Find the risk of a portfolio using
(portfolio variance)?
2. As an investor and assuming equal
returns in any portfolio, your investment
decision will be
e 9:23 /
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