# Portfolio Investment Yield

Not what you're looking for?

Please view the attached file.

a. Provide one set of weights for a portfolio of all three assets that will deliver a return of 18%.

b. Show graphically and explain briefly how you would find the minimum variance portfolio set that would have an 18% return.

c. Calculate the above set.

##### Purchase this Solution

##### Solution Summary

The solution displays the full mathematical calculations necessary to demonstrate the calculation for the three assets.

##### Solution Preview

See attachment for the proper layout.

a. Provide one set of weights for a portfolio of all three assets that will deliver a return of 18%.

By definition, we know that W3 = 1 - W1 - W2

Then W1*R1 + W2*R2 + W1*R3 = 18%

20% W1 + 12%W2 + 16%(1 - W1 - W2) = 18%

4% W1 - 4% W2 = 2%

4% W1 = 2% + 4% W2

W1 = 0.5 + W2

So any combination of W1 = 0.5 + W2 will satisfy a return of 18%

We can pick up W2 = 0.1, then W1 = 0.5 +0.1 = 0.6, and W3 = 1 - 0.1 - 0.6 = 0.3

So the portfolio of (W1, W2, W3) = (0.6, 0.1, 0.3) will deliver a return of 18%.

b. Show graphically and ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

##### Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

##### Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

##### Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

##### Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media