Back-office operations deal directly with the customer. true false

Suppose you are currently invested 100% in U.S. stocks and you CANNOT short: a.Find the portfolio that maximizes expected return

Volgvan

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

$S_a=\frac{E_a-E_r}{\sigma}$

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

$\sigma^2_{portfolio}=\sum_{i}^{n}{\sigma_i^2w_i^2}+\sum_{i}^{n(n-1)/2}{cv_i}$

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

$\sigma_{portfolio}=\sqrt{\sigma^2_{portfolio}}$

Expected rate is given as

$E_{rate of return}=\sum_{i=1}^{n}{E_a_i\times w_i}$

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.

4 0

3 years ago

In double entry bookkeeping, where should you record assets?

vekshin1

Hi there :-)

The answer is
A. In the left debits column

Hope it helps

5 0

3 years ago

Read 2 more answers

______ involves the free flow of products and factors of production between member countries, the adoption of a common external

Ivahew [28]

Answer:

A, an economic Union.

Explanation:

An economic union is a type of trade agreement concerning the same market of commodities, between a group of countries.

The trade agreement usually involves the free flow of the factors of production as well as factors of production.

Also, the agreement means that countries that are a part of the economic union are able to adopt a currency, regulate and harmonize tax rates as well as implement similar policies.

Asides economic union, there are other types of trade agreements and they include, free-trade zones, custom union, etc.

Cheers.

5 0

2 years ago

Read 2 more answers

Wich agricultural CTSO has programs for middle school and high school students as well as college students?

Tema [17]

National ffa is the answer

4 0

3 years ago

Read 2 more answers

Answer the question on the assumption that the legal reserve ratio is 20 percent. suppose that the fed sells $500 of government

mel-nik [20]

The sale and purchase of government securities by the Fed would leave reserves unchanged.

<h3>What is the effect of the purchase and sale of government securities?</h3>

The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.

One of the monetary policy tools of the Fed is open market operation. When the Fed sells government securities, it is known as an open market sales which reduce money supply. When the Fed buys government securities, it is known as an open market purchase which increases money supply.

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. Reserve ratio is determined by the Fed.

Change in reserve = ( value of government securities bought / reserve ratio) - (value of government securities sold / reserve ratio)

($500 / 0.2) - (500 / 0.2) = 0

To learn more about reserve ratio, please check: brainly.com/question/6831267

#SPJ1

7 0

2 years ago