Business, 01.07.2021 15:10, HunchoPoncho
Using the table, plot the opportunity set of risky assets in Excel.
Then vary the correlation between stocks and bonds from + 1 to -1 and describe the changes in shape of the efficient frontier as you do so.
Upload the Excel file that contains the table & graph.
Also include in Excel file a description of the efficient frontier's shape as you vary the correlation. A B C D E 1 Return Risk Sharpe Ratio Stock Allocation 0% 2. 3 Bond Allocation 100% 95% 90% 5% 4 10% 5 6 7 15% 20% 85% 80% 25% 8 9 30% 35% 75% 70% 65% 60% 10 11 12 40% 45% 50% 55% 50% 45% 40% 13 14 35% 15 16 17 55% 60% 65% 70% 75% 80% 30% 25% 18 19 85% 20% 15% 10% 5% 20 90% 21 95% 100% 0% 22 23 24 25 26 27 28 29 30 31 32 33Using the graph of the opportunity set of risky assets, answer the following:a) Change the correlation of stocks and bonds back to 0.25 and observe the shape of the efficient frontier. b) Starting at the point that corresponds to 100% Bonds & 0% Stocks, describe what happens to portfolio risk and return as you increase the stock allocation and decrease the bond allocation? Why is this happening?c) Now change the correlation between stocks & bonds to -1. What is the lowest risk achievable?
Answers: 1
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Business, 22.06.2019 05:00, and7393
Xie company identified the following activities, costs, and activity drivers for 2017. the company manufactures two types of go-karts: deluxe and basic. activity expected costs expected activity handling materials $ 625,000 100,000 parts inspecting product 900,000 1,500 batches processing purchase orders 105,000 700 orders paying suppliers 175,000 500 invoices insuring the factory 300,000 40,000 square feet designing packaging 75,000 2 models required: 1. compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. in january 2017, the deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. assign overhead costs to each model using the single plantwide overhead rate.
Answers: 3
Using the table, plot the opportunity set of risky assets in Excel.
Then vary the correlation betwe...
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