Scribd Logo
Upload

Welcome to Scribd!

  • Assignment 3 Martinez

    Uploaded by

    Mark joseph Martinez
    2 views2 pages
    This document contains calculations to determine the expected return and risk of an investment portfolio consisting of four assets with different expected returns and weights. It calculates the expected return as a weighted average of the individual asset returns, equaling 10%. It also calculates the standard deviation of the portfolio returns as the square root of the weighted variance of individual asset returns, equaling 15%, which is the expected risk level. The document concludes that the expected return is 10% with a risk level of 15%.

    Original Description:

    Original Title

    Assignment 3 martinez

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document contains calculations to determine the expected return and risk of an investment portfolio consisting of four assets with different expected returns and weights. It calculates the expected return as a weighted average of the individual asset returns, equaling 10%. It also calculates the standard deviation of the portfolio returns as the square root of the weighted variance of individual asset returns, equaling 15%, which is the expected risk level. The document concludes that the expected return is 10% with a risk level of 15%.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    2 views2 pages

    Assignment 3 Martinez

    Uploaded by

    Mark joseph Martinez
    This document contains calculations to determine the expected return and risk of an investment portfolio consisting of four assets with different expected returns and weights. It calculates the expected return as a weighted average of the individual asset returns, equaling 10%. It also calculates the standard deviation of the portfolio returns as the square root of the weighted variance of individual asset returns, equaling 15%, which is the expected risk level. The document concludes that the expected return is 10% with a risk level of 15%.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    of 2

    Martinez, Mark Joseph B.

    FIN 009 - BAFM32S1 - Capital Market


    EXPECTED RETURN= (15%*20%) + (30%*25%) +(-10%*30%) +

    (10%*25%)

    = 0.1 or 10%

    EXPECTED RISK;

    Standard Deviation is

    (15%-10%2 20% = 0.0005

    (30%-10%)2 25% = 0.01

    (-10%-10%)2 * 30% = 0.012

    (10%-10%)2 * 25% = 0

    = Vo.0225

    .15 or 15%

    Therefore, the expected return of the investment is 10% with a

    risk of 15%.
    Honor of Pledge for Graded Assignments

    "I affirm that i shall not given or receive any unauthorized help on this assignment and that
    all work shall be my own. "

    Signature over Printed Name

    You might also like