ABC Investment Ltd has set up a portfolio that comprises Gold shares and Silver shares. The following information relates to these shares. Gold Silver Expected return 17% 12% Standard Deviation of return 15% 5% Correlation of coefficient - 0.5 Required: Determine the expected return of the portfolio if 65% of Gold shares and 35% of Silver shares are combined to form the portfolio Determine the risk of the portfolio by calculating portfolio standard deviation given the same portfolio combination For the past 5 years, the portfolio has the consecutive rate of returns of 12%, 15 %, -14%, 13% and 16%. Calculate the geometric average return of this portfolio for the period

ABC Investment Ltd has set up a portfolio that comprises Gold shares and Silver shares. The following information relates to these shares. Gold Silver Expected return 17% 12% Standard Deviation of return 15% 5% Correlation of coefficient - 0.5 Required: Determine the expected return of the portfolio if 65% of Gold shares and 35% of Silver shares are combined to form the portfolio Determine the risk of the portfolio by calculating portfolio standard deviation given the same portfolio combination For the past 5 years, the portfolio has the consecutive rate of returns of 12%, 15 %, -14%, 13% and 16%. Calculate the geometric average return of this portfolio for the period

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 25P

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