McDonald's serves McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, McHuevo Burger in Uruguay and
1 answer:
You might be interested in
Answer:
D. decreasing returns to scale.
The answer and procedures of the exercise are attached in the image below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
Part a: The portfolio which maximizes the expected return is in the attached file.
Part b:The portfolio's expected rate of return is 11.20% and the weight is 100% for US only.
Explanation:
As the question is incomplete and the data is not available, thus the complete question is found as attached with the solution.
The Sharpe rate is given as
Where
- E_a is the estimated rate of return for a value
- E_r is the risk free rate of return
- σ is the standard deviation of the investment.
The portfolio variance is given as
Where
- σ is the standard deviation of the investment.
- w is the weighted value of the investment
- cv is the covariance term
Portfolio standard deviation is given as
Expected rate is given as
Now the Sharp value is calculated as above.
Now the values as given in the excel sheet are added in the attached excel sheet, following formulas are used to calculate various values
Sharpe ratio is calculated using =(B6-J3)/C6
Portfolio variance is calculated using (=B13^2*C6^2+B14^2*C7^2+B15^2*C8^2+B16^2*C9^2+2*B13*B14*C6*C7*D7+2*B13*B15*C6*C8*D8+2*B13*B16*C6*C9*D9+2*B14*B15*C7*C8*E8+2*B14*B16*C7*C9*E9+2*B15*B16*C8*C9*F9)
Portfolio standard deviation is SQRT(Variance)
Expected return is calculated using =B13*B6+B14*B7+B15*B8+B16*B9
Sharpe is calculated using =(B23-$J$3)/B22
Part a:
The portfolio which maximizes the expected return is in the attached file.
Part b:
The portfolio's expected rate of return is 11.20% and the weight is 100% for US only.
