Activity 2 A portfolio is valued at $20,000 at the beginning of a 31-day month. On day 12, $2000 was removed and on the 20th day, $1500 was added. At the end of the month, the portfolio was worth $22,000. Calculate (i) the time weighted return for the month and; (ii) the dollar weighted return.
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how to calculate the dollar weighted return without excel
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- Assume you have the following information with respect to the amount of investments you have, assigned to three portfolio managers who work for you: Manger A Manager B Manager C Amount of investment 10,000 15,720 30,500 Day of investment 5 February 18 March 20 April Market value of the investment at the end of the year 12,530 18,912 35,640 Assume the number of days in the year is 360 days whereas each month is 30 days You need to answer the following: The compound rate of return for each manager Your portfolio rate of return at the end of the year If you withdrew 4,500 at May 15th and 2,300 at Sept. 10th from your portfolio, what would be your portfolio rate of return at the end of the year?The benchmark portfolio has an asset allocation of 65% stocks, 30% bond and 5% cash. The annual returns on these three asset classes are 7.20%, 3.90% and 1.10%. Over the same time period, a portfolio manager had an asset allocation of 72% stocks, 22% bonds and the balance in cash. The returns on the three asset classes in the manager's portfolio were 7.48%, 4.13% and 1.56% respectively. What was the contribution to the manager's value-added, in % (to three decimal places) from his selection skills?The benchmark portfolio has an asset allocation of 65% stocks, 30% bond and 5% cash. The annual returns on these three asset classes are 7.70%, 4.10% and 1.30%. Over the same time period, a portfolio manager had an asset allocation of 72% stocks, 23% bonds and the balance in cash. The returns on the three asset classes in the manager's portfolio were 7.69%, 4.20% and 1.51% respectively. What was the contribution to the manager's value-added, in % (to three decimal places) from his asset allocation skills?
- In the first quarter of the current financial year, Larry Jonesheld an equally weighted portfolio in two assets, E Ltd and F Ltd (that is, 50% of his wealth was held in each asset). The monthly returns for each asset for these 3 months were as follows: Asset July August September E Ltd 4% -3% 2%F Ltd 6% -1% 6% (i) Calculate the arithmetic average return for the three months for the portfolio (ii) Calculate the geometric average return for the three months for the portfolio. (Show answer as a percentage correct to 2 decimal places.) Briefly explain:(i) The Australian investment framework; and (j) The steps in the investment process. Following are the expected…P8-3 Portfolio Return At the beginning of the month, you owned $12,000 of FordMotor, $18,000 of Netflix, and $20,000 of Wayfair. The monthly returns for Ford Motor,Netflix, and Wayfair were 1.50 percent, 1.0 percent, and − 1.50 percent. What is yourmonthly portfolio return? What is your effective annual portfolio return? To solve, first you must calculate each stock’s weight of the total portfolio.Times that weight for the stock’s contribution to the portfolio return, thensum all three stocksPortfolio Return Year-to-date, Company O had earned a -7.6 percent return. During the same time period, Company V earned 9.85 percent and Company M earned 2.88 percent. If you have a portfolio made up of 25 percent Company O, 60 percent Company V, and 15 percent Company M, what is your portfolio return?
- A portfolio manager plans to invest 1,000,000 TL in an investment with a 22% return for the first 2 years and 25% for the following 5 years. Accordingly, calculate the cumulative value of the investment at the end of 7 years.Jamie Peters invested $127,000 to set up the following portfolio one year ago: Asset Cost Beta at purchase Yearly income Value today A $38,000 0.72 $1,000 $38,000 B $40,000 0.98 $1,600 $41,000 C $39,000 1.48 $0 $45,500 D $10,000 1.29 $450 $10,500 a. Calculate the portfolio beta on the basis of the original cost figures. b. Calculate the percentage return of each asset in the portfolio for the year. c. Calculate the percentage return of the portfolio on the basis of original cost, using income and gains during the year. d. At the time Jamie made his investments, investors were estimating that the market return for the coming year would be 10%. The estimate of the risk-free rate of return averaged 5% for the coming year. Calculate an expected rate of return for each stock on the basis of its beta and the expectations of market and risk-free returns. e. On the…You have a portfolio of three assets at the beginning of the year: Asset 1 is 30% of the portfolio, Asset 2 is 40% of the portfolio, and Asset 3 is 30% of the portfolio. During the year, Asset 1 has a return of 4%, Asset 2 has a return of 12%, and Asset 3 has a return of -20%. What was the return on your portfolio for the year?
- Set up the complete formula for Dollar Weighted Return (DWR) for the following portfolio including final value of the portfolio. Year 0 1 2 3 4 Actions at the ending of the year (Yr0)Starting with $1000 (Yr1)Adding $100 (Yr2)Withdrawing $200 (Yr3)Adding $300 (Yr4)Ending Value = ? ROR during each Yr (Yr0) - (Yr1) 8% (Yr2)-4% (Yr3) 9% (Yr4) 3% A. Calculate the time weighted return (TWR) Complete Questions with respect to ExcelConsider a portfolio consisting of $ 10 million invested in the S&P 500 and $ 7.5 million invested in U.S treasury bonds. The S&P 500 has an expected return of 14% and a standard deviation of 16%. The treasury bonds have an expected return of 9% and a standard deviation of 8%. The correlation between the S&P 500 and Bonds is 0.35. All figures are stated on an annual basis. Find the VAR for one year at a probability of 5%. Identify and use the most appropriate method given the information you have. Using the information, you obtained in part a, find VAR for one day.Assuming the below annual rates of return: Annual Rates of Return: Wamart - 12.36% Coca Cola - 25.51% Pfizer - 14% CVS - 32.99% Berkshire Hathaway - 29.66% Assume that you initially invested $1,000,000 in the portfolio and that the distribution of the annual rate of return of the portfolio is normal. What is the distribution of the return of the portfolio 20 years after its formation? Provide the graph of the distribution of the return of the portfolio.
