Risk analysis plan -- 2
Budget: $10 – $30 USD
I need a good finance write help write risk analysis questions.
Question
Your portfolio has three asset classes. U.S. government T-bills account for 45% of
the portfolio, large-company stocks constitute another 40%, and small-company stocks make up the remaining 15%. If the expected returns are 3.8% for the T-bills,
12.3% for the large-company stocks, and 17.4% for the small-company stocks, what is the expected return of the portfolio?
The expected annual returns are 15% for investment 1 and 12% for investment 2. The standard deviation of the first investment’s return is 10%; the second investment’s return has a standard deviation of 5%. Which investment is less risky based solely on standard deviation? Which investment is less risky based on coefficient of variation? Which is a better measure given that the expected returns of the two investments are not the same?
Question
Your portfolio has three asset classes. U.S. government T-bills account for 45% of
the portfolio, large-company stocks constitute another 40%, and small-company stocks make up the remaining 15%. If the expected returns are 3.8% for the T-bills,
12.3% for the large-company stocks, and 17.4% for the small-company stocks, what is the expected return of the portfolio?
The expected annual returns are 15% for investment 1 and 12% for investment 2. The standard deviation of the first investment’s return is 10%; the second investment’s return has a standard deviation of 5%. Which investment is less risky based solely on standard deviation? Which investment is less risky based on coefficient of variation? Which is a better measure given that the expected returns of the two investments are not the same?