TWO PART QUESTION Part 2 -- The Optimal Portfolio -- a. is the combination of assets along the Efficent Frontier expecte
Posted: Sun Jun 05, 2022 10:49 am
TWO PART QUESTION
Part 2 -- The Optimal Portfolio --
a. is the combination of assets along the Efficent Frontier
expected to deliver the highest returns for the lowest risk
b. is the combination of assets which all or at least most
clients should generally be guided into by financial advisors
c. once applied to client accounts will typically generate
returns not available to individuals managing their own money
d. is the combination of assets along the Efficent Frontier
expected to deliver the lowest risk
e. produces an asset allocation which typically produces returns
which more than pays for the 1-2% fees professionals may charge for
assets under management
Given the following expectations for return, risk and correlation: E (r) o psb Portfolio S 0.11 0.27 -0.25 Portfolio B 0.12 0.21 Risk-free 0.065 An optimal portfolio of S and B has been calculated to contain 0.6 stocks, i.e. portfolio S (out of a possible 100% or 1.0). What would be the standard deviation of the optimal portfolio from S and B? O 0.1628 O 0.1472 O 0.1718 O 0.1555 O 0.1797
- Two Part Question Part 2 The Optimal Portfolio A Is The Combination Of Assets Along The Efficent Frontier Expecte 1 (54.64 KiB) Viewed 58 times
a. is the combination of assets along the Efficent Frontier
expected to deliver the highest returns for the lowest risk
b. is the combination of assets which all or at least most
clients should generally be guided into by financial advisors
c. once applied to client accounts will typically generate
returns not available to individuals managing their own money
d. is the combination of assets along the Efficent Frontier
expected to deliver the lowest risk
e. produces an asset allocation which typically produces returns
which more than pays for the 1-2% fees professionals may charge for
assets under management
Given the following expectations for return, risk and correlation: E (r) o psb Portfolio S 0.11 0.27 -0.25 Portfolio B 0.12 0.21 Risk-free 0.065 An optimal portfolio of S and B has been calculated to contain 0.6 stocks, i.e. portfolio S (out of a possible 100% or 1.0). What would be the standard deviation of the optimal portfolio from S and B? O 0.1628 O 0.1472 O 0.1718 O 0.1555 O 0.1797