Chat with us, powered by LiveChat Investment strategy: This course will explore the theory and application of portfolio theory, covering the topic ar | WriteDen

Investment strategy: This course will explore the theory and application of portfolio theory, covering the topic ar

 Topic: Investment strategy [related fields: Finance]

Paper details:

This course will explore the theory and application of portfolio theory, covering the topic areas of investment for equity, bond, and derivatives. Furthermore, investment management will also be covered in this course.   There are total 9 questions.  The parts written in blue letters with investment 01, 02, and 03 respectively are parts that should have pictures related to the problem. Please refer to the attached pictures. please read carefully all the problecgxms and double-check with the calculation.

 

Given Data

Stock B 2015 2016 2017 Annual Return -10% 25% 45%

Average return = (-10% + 25% + 45%)/3 = 20% = 0.20

Annual Return (Annual Return - Average return) 0.09 Stock B 2015 2016 2017 -0.10 0.25 0.45 0.00 0.06

Var = ∑(Annual Return – Average Return)2 / N

Var = 0.155/3 = 0.051667 ~ 0.052

——————————————————–

1.2

SD = √Var = √0.051667 = 0.227

——————————————————–

2.1

Given Data

Return of B 201901 201902 201903 Return of A -0.05 0.10 0.16 0.02 -0.07 0.10

Average return of A = (-0.05 + 0.10 + 0.16) / 3 = 0.07

Average return of B = (0.02 – 0.07 + 0.10) / 3 = 0.01666667

Calculation Table:

201901 201902 201903 Return of A Return of B (Return A - Average Return A) (Return B - Average Return B) (Return A - AverageCov(A,B) = ∑(Return A – Average Return A) (Return B – Average Return B) / N

Cov(A, B) = 0.0045 / 3 = 0.0015

——————————————————–

2.2

Calculation Table

Return of A (Return A - Average Return A)? -0.05 0.0144 0.10 0.0009 0.16 0.0081

Var(A) = ∑(Return A – Average Return A)2 / N

Var(A) = 0.0234 / 3 = 0.0078

SD(A) = √Var(A) = √0.0078 = 0.08832

——————————————————–

2.3

Calculation Table

Return of B 0.02 -0.07 0.10 (Return B - Average Return B) 0.00001111111 0.00751111111 0.00694444444

Var(B) = ∑(Return B – Average Return B)2 / N

Var(B) = 0.01446667 / 3 = 0.0048222

SD(B) = √Var(B) = √0.0048222 = 0.0694

——————————————————–

2.4

Corr(A, B) = Cov (A, B) / (SD(A) SD(B))

Corr (A, B) = 0.24458

———————-

    HOW OUR WEBSITE WORKS

    Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of 
    HIGH QUALITY & PLAGIARISM FREE.

    Step 1

    To make an Order you only need to click ORDER NOW and we will direct you to our Order Page at WriteDen. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
     Deadline range from 6 hours to 30 days.

    Step 2

    Once done with writing your paper we will upload it to your account on our website and also forward a copy to your email.

    Step 3
    Upon receiving your paper, review it and if any changes are needed contact us immediately. We offer unlimited revisions at no extra cost.

    Is it Safe to use our services?
    We never resell papers on this site. Meaning after your purchase you will get an original copy of your assignment and you have all the rights to use the paper.

    Discounts

    Our price ranges from $8-$14 per page. If you are short of Budget, contact our Live Support for a Discount Code. All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

    Please note we do not have prewritten answers. We need some time to prepare a perfect essay for you.