The following? table, contains annual returns for the stocks of ABC Corp. ?(ABC ?) and XYZ...

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The following? table, contains annual returns for the stocks ofABC Corp. ?(ABC ?) and XYZ Corp. ?(XYZ ?). The returns arecalculated using? end-of-year prices? (adjusted for dividends andstock? splits). Use the information for ABC Corp. ?(ABC ?) and XYZCorp. ?(XYZ ?) to create an Excel spreadsheet that calculates theaverage returns over the? 10-year period for portfolios comprisedof ABC and XYZ using the? following, respective,? weightings:(1.0,? 0.0), (0.9,? 0.1). The average annual returns over the?10-year period for ABC and XYZ are 15.33 ?% and 13.04 ?%respectively.? Also, calculate the portfolio standard deviationover the? 10-year period associated with each portfoliocomposition. The standard deviation over the? 10-year period forABC Corp. and XYZ Corp. and their correlation coefficient are 25.33?%, 23.42 ?%, and 0.84285 respectively. ?(Hint?: Review Table?5.2.) Enter the average return and standard deviation for aportfolio with? 100% ABC Corp. and? 0% XYZ Corp. in the tablebelow.

Year   ABC Returns   XYZ Returns
2005   -3.5%   17.3%
2006   1.9%   -8.1%
2007   -31.6%   -26.7%
2008   -10.3%   -3.2%
2009   30.2%   9.9%
2010   26.5%   10.1%
2011   22.8%   4.8%
2012   52.4%   43.8%
2013   35.6%   42.3%
2014   29.3%   40.2%

Enter the average return and standard deviation for a portfoliowith? 100% ABC Corp. and? 0% XYZ Corp. in the table below.???(Roundto two decimal? places.)
Enter the average return and standard deviation for a portfoliowith? 90% ABC Corp. and? 10% XYZ Corp. in the table below.???(Roundto two decimal? places.)

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Expected return of twoasset portfolio Rp w1R1 w2R2where Rp expected returnw1 weight of Asset 1R1 expected return of Asset 1 average annualreturnw2 weight of Asset 2R2    See Answer
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The following? table, contains annual returns for the stocks ofABC Corp. ?(ABC ?) and XYZ Corp. ?(XYZ ?). The returns arecalculated using? end-of-year prices? (adjusted for dividends andstock? splits). Use the information for ABC Corp. ?(ABC ?) and XYZCorp. ?(XYZ ?) to create an Excel spreadsheet that calculates theaverage returns over the? 10-year period for portfolios comprisedof ABC and XYZ using the? following, respective,? weightings:(1.0,? 0.0), (0.9,? 0.1). The average annual returns over the?10-year period for ABC and XYZ are 15.33 ?% and 13.04 ?%respectively.? Also, calculate the portfolio standard deviationover the? 10-year period associated with each portfoliocomposition. The standard deviation over the? 10-year period forABC Corp. and XYZ Corp. and their correlation coefficient are 25.33?%, 23.42 ?%, and 0.84285 respectively. ?(Hint?: Review Table?5.2.) Enter the average return and standard deviation for aportfolio with? 100% ABC Corp. and? 0% XYZ Corp. in the tablebelow.Year   ABC Returns   XYZ Returns2005   -3.5%   17.3%2006   1.9%   -8.1%2007   -31.6%   -26.7%2008   -10.3%   -3.2%2009   30.2%   9.9%2010   26.5%   10.1%2011   22.8%   4.8%2012   52.4%   43.8%2013   35.6%   42.3%2014   29.3%   40.2%Enter the average return and standard deviation for a portfoliowith? 100% ABC Corp. and? 0% XYZ Corp. in the table below.???(Roundto two decimal? places.)Enter the average return and standard deviation for a portfoliowith? 90% ABC Corp. and? 10% XYZ Corp. in the table below.???(Roundto two decimal? places.)

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