BUS 550 Financial Management Assignment

Assignment Help Corporate Finance

Reference no: EM132860537 , Length: 8 pages

BUS 550 Financial Management - Westcliff University

This is a complete written report of your portfolio formation in a Word file. Your historical data and relevant derived values in tables can be pasted from your previous calculations in the Excel file. Please provide explanations of all calculations and the justifications in the Word format.

Also, make sure to paste all underlying Excel formulae that you used for calculations in the Word file.

1. Provide once again the data that you presented in answering part 2 of professional assignment 2.

2. Calculate the mean, variance, and the standard deviation of each security's annual rate of return.

3. Calculate the correlation coefficient between every possible pair of securities' annual rates of return.

4. Choose percentages of your initial investment that you want to allocate amongst the five securities (weights in the portfolio). Create embedded formulae which generate statistical properties of the portfolio upon insertion of the weights. Observe the mean, the standard deviation, and the CV of the annual rate of return of the portfolio.

5. Find the combination of the weights that minimizes CV of the portfolio. How the CV of the optimal portfolio compares with the CV's of its constituents. What is the expected rate of return and standard deviation of the rate of return of the portfolio?

6. Choose different values within the range of the standard deviation of the portfolio, and for each chosen value locate the corresponding point on the efficient frontier by finding the weights that maximize the expected rate of return of the portfolio. Subsequently, construct the efficient frontier of your portfolio.

7. Assume that you initially invested $1,000,000 in the portfolio and that the distribution of the annual rate of return of the portfolio is normal. What is the distribution of the return of the portfolio 20 years after its formation? Provide the graph of the distribution of the
return of portfolio.

Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide references for content when necessary. Provide your work in detail and explain in your own words. Support your statements with six (6) peer-reviewed in-text citation(s) and reference(s).

Note: MUST Include:
Efficient frontier graph
conclusion
Elaboration/significance of calculations

Reference no: EM132860537

Questions Cloud

Describe your target audience for your project : Describe your target audience for your project and identify whether they are beginners or experts.

Geographies of global change essay : What do different visions of development (colonial, Cold War, neoliberal) identify as the threat to the status quo?

Great deal to significance of advantages : The novel begins with some advice that Nick receives from his father. Nick attaches "a great deal" to the significance of "advantages."

Information technology and organizational learning : Review the section on the definitions of maturity stages and dimension variables in the CEO Technology Best Practices Arc.

BUS 550 Financial Management Assignment : BUS 550 Financial Management Assignment Help and Solution, Westcliff University - Assessment Writing Service - Calculate the mean and standard deviation

Multiple quantifiers and general conditional proof : I need a few problems solved regarding multiple quantifiers and general conditional proof. Only if you have LPL textbook and Tarski's world.

Post an executive summary of your comprehensive project : Post an executive summary of your Comprehensive Project in the body of a post in this discussion

Demonstrates the significance of the work undertaken : Demonstrates the significance of the work undertaken, the objectivity of research and analysis underpinning the report, and the credibility of the resulting

Perspectives are underrepresented in your career field : What demographic groups, backgrounds, or perspectives are underrepresented in your career field? Why?

User Account

All Pages