Find the optimal portfolio in 1% increments for the following 2 stocks.
State Prob. A B
Recession 10% -14% 24%
Average 70% 9% -28%
Boom 20% 23% 36%
Need to find Expected return, standard deviation, coefficient of variation and Sharpes ration for all 101 combinations of A and B.
Use 2 portfolio formulas
Need correlation from Excel between A and B.
Weights will look like this in excel for all 101
Wa
Wb
0
1
0.01
0.99
0.02
0.98
0.03
0.97
0.04
0.96
0.05
0.95
0.06
0.94
0.07
0.93
Other samples, services and questions:
When you use PaperHelp, you save one valuable — TIME
You can spend it for more important things than paper writing.
