Finance and Investment

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EFFICIENCY

1.      Which one of the following portfolios cannot lie on the efficient frontier?

choice

Portfolio

Expected Return

Standard Deviation

a.

W

15

36

b.

X

12

15

c.

Z

5

7

d.

Y

9

21

 

Answer) Portfolios Y cannot lie on the efficient frontier

Draw Graph to indicate why.

Please draw the chart

 

 

2.     Consider these three stocks in the following table. Pt represents price at time t, Qt represents shares outstanding at time t.

 

P0

Q0

P1

Q1

P2

Q2

A

90

100

95

100

95

100

B

50

200

45

200

45

200

C

100

200

110

200

55

400

Calculate the rate of return on

a.)     a price-weighted index, b.) an equal weighted index using $1000 in each, and c.) a value-weighted index of these three stock for the second period.

 

 

Note: I need it to be done withen 3 hours from now 

 

    • Posted: 3 years ago
    • Due: 
    • Budget: $20