Derive the optimal weights for mean-variance optimizer

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Reference no: EM131987251

1. Compute the future value in year 9 of a $400 deposit in year 4 and another $200 deposit at the end of year 5 using a 10% interest rate.

2. You would like to sell 300 shares of Pfizer, Inc.(PFE). The current bid and ask quotes are $27.39 and $27.42, respectively. You place a limit sell-order at $27.41. If the trade executes, how much money do you receive from the buyer?

3. Suppose there is one risky asset and one risk free asset. Derive the optimal weights for a mean-variance optimizer to hold of each.

Reference no: EM131987251

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