Assets/variance/portfolio question

Related BrainMass Solutions

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  Assets are explained. Minimum variance portfolio and yield expected return is discussed.

• Calculate the standard deviation of two assets: Lind Distributing, Henry Manufacturing

  To find the standard deviation of a portfolio composed of the two assets you need to first compute the variance of the portfolio and then you can find the standard deviation by taking the square root of the variance.

• What the impact on risk and return would be (the correlation here is .09).

  81608 Finance Q 2, # 5 Your Company has a portfolio made up of 2 assets, One from the USA and the other from Swaziland.

• Expected Return and Standard Deviation of Portfolio Caclulations

  d) Finds the minimum variance portfolio and its expected return if the two assets are perfectly negative correlated.

• Risk of Finance, Portfolio, Investments

  This is exactly why the minimum variance portfolio is a portfolio of risky assets with the lowest variance. Risk of Finance, Portfolio, Investments is discussed very comprehensively in this explanation..

• Investment Management Questions

  The risk is determined by the variance of returns of the combined portfolio Mathematically Where P represents the portfolio and A & B the individual assets, σ represents the variance of each asset, w represents the weight (% of total investment).

• Security Expected Return and Standard Deviation

  ^2_1 + w^2_2 * omega^2_2 + 2*w_1*w_2*omega_1*omega)2*p_12 Where E(R_p) = expected return of the portfolio omega = variance of the portfolio w_1, w_2 = weights of the two assets in the portfolio.

• Optimal Portfolio and Risk Averse

  since the two risky assets have independent and identical distribution, we have sigma1=sigma2 and Expected value E(r1)=E(r2) The variance of the risky portfolio will be =w1^2*sigma1^2+w2^2sigma2^2+2w1w2*Cov(risky assets) As the two risky assets have

• Optimal Portfolio for an Investor

  Portfolio Set or the opportunity set are the set of points in the mean variance plane which result from combining assets in all possible proportions given a fixed value for the correlation coefficient.