Please could you show full steps and no excel please Miss M had R100,000 to invest in...

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Please could you show full steps and no excelplease
Miss M had R100,000 to invest in the financial market. She choseto invest R10,000 in Asset A, which returned 12.0%; R40,000 inAsset B which returned 15.0%; R20,000 in Asset C which returned–5.0%, and the remaining in Asset D which returned 5%. Thecorrelation between the assets are ?AB = 0.75, ?AC = 0.35, ?AD = 1,?BC = –0.5, ?BD = 0.25, and ?CD = -1. The standard deviations are0.75, 0.45, 0.30, and 0.50 for A, B, C, and D respectively. To findthe variance of an N -stock portfolio, you must add the entries ina NxN matrix. The diagonal cells contain variance terms (X2?2 ) andthe off-diagonal cells contain covariance terms (XAXB?AB), where XA= proportion invested in stock A and ?AB = covariance betweenstocks A and B.
A. What is the average real return for each if inflation rate is3%?
B. Find the proportion of investment in each stock.
C. Calculate the expected returns of the portfolio.
D. What is the variance of the portfolio returns?
E. Find the standard deviation.

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4.5 Ratings (777 Votes)

a The formula for calculating real rate of return iswhere r is the real rate of return n is nominal rate of return iis the inflation rateSo ra 012 0031 03 08738 which is8738rb 015 00310301165 which is 1165rc 005 0031030078 which is 78rd0050031030019 See Answer

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Please could you show full steps and no excelpleaseMiss M had R100,000 to invest in the financial market. She choseto invest R10,000 in Asset A, which returned 12.0%; R40,000 inAsset B which returned 15.0%; R20,000 in Asset C which returned–5.0%, and the remaining in Asset D which returned 5%. Thecorrelation between the assets are ?AB = 0.75, ?AC = 0.35, ?AD = 1,?BC = –0.5, ?BD = 0.25, and ?CD = -1. The standard deviations are0.75, 0.45, 0.30, and 0.50 for A, B, C, and D respectively. To findthe variance of an N -stock portfolio, you must add the entries ina NxN matrix. The diagonal cells contain variance terms (X2?2 ) andthe off-diagonal cells contain covariance terms (XAXB?AB), where XA= proportion invested in stock A and ?AB = covariance betweenstocks A and B.A. What is the average real return for each if inflation rate is3%?B. Find the proportion of investment in each stock.C. Calculate the expected returns of the portfolio.D. What is the variance of the portfolio returns?E. Find the standard deviation.