Worksheet forCh6HW -2

Worksheet forCh6HW -2 - Chapter 6 2 Sec (2) Chapter 6...

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Unformatted text preview: Chapter 6 2 Sec (2) Chapter 6 Two-Security Portfolio Asset Allocation Analysis: Risk and Return Expected Standard Corr. Return Deviation Coeff s,b Covariance Bonds 6.00% 12.00% Stocks 10.00% 20.00% T-Bill 4.00% 0.00% Weight Weight Expected Standard Reward to Bonds Stocks Return Deviation Variability 1 6.0000% 12.0000% 0.16667 0.8 0.2 6.8000% 10.4000% 0.26923 0.6 0.4 7.6000% 10.7629% 0.33448 0.4 0.6 8.4000% 12.9244% 0.34044 0.2 0.8 9.2000% 16.1790% 0.32140 1 10.0000% 20.0000% 0.30000 Minimum Variance Portfolio Short Sales No Short Allowed Sales Weight Bonds 0.73529 0.73529 Weight Stocks 0.26471 0.26471 Return 7.0588% 7.0588% Risk 10.2899% 10.2899% Optimal Risky Portfolio Short Sales No Short Allowed Sales Weight Bonds 0.48077 0.48077 Weight Stocks 0.51923 0.51923 Ex Ret 8.0769% 8.0769% St Dev. 11.8796% 11.8796% Reward to Variability 0.34319 0.34319 Optimal Portfolio with a Risk Free Asset Short Sales No Short Allowed Sales Desired rate of return: 0.1 Weight OP 1.47170 1.47170 Weight RF-0.47170-0....
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Worksheet forCh6HW -2 - Chapter 6 2 Sec (2) Chapter 6...

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