B) Consider a portfolio with weights of 60% in stock and 40% in bonds. (i) What is the rate of return on the portfolio i
Posted: Mon Mar 21, 2022 4:32 pm
B) Consider a portfolio with weights of 60% in stock and 40% in
bonds.
(i) What is the rate of return on the portfolio in each
scenario? (6 marks)
(ii) What are the expected rate of return and standard deviation
of the portfolio? (7 marks)
(iii) Explain with reason what investment you would invest, i.e.
in the portfolio, in stocks only, or in bonds only?
bonds.
(i) What is the rate of return on the portfolio in each
scenario? (6 marks)
(ii) What are the expected rate of return and standard deviation
of the portfolio? (7 marks)
(iii) Explain with reason what investment you would invest, i.e.
in the portfolio, in stocks only, or in bonds only?