Excel Question. Download the spreadsheet "portfolio_optimizer_holden.xlsx" posted on the course website. (a) What happens to the share of asset 2 in the optimal risky portfolio in the following scenarios. Please provide a brief explanation in each case. i. The expected return of asset 2 is increased. ii. The standard deviation of asset 2 is increased. iii. The standard deviation of asset 3 is increased. iv. The correlation between assets 3 and 5 is increased. (b) Asset 4 has E[R4] = 7.4% and SD = 21% meaning it is at least as risky as the other risky assets, and has a lower expected return than any of the other risky assets. In other words, it appears to be a dominated asset. Why does it have a positive weight in the optimal portfolio?

Answers

Answer 1

(a)i. The expected return of asset 2 is increased: If the expected return of Asset 2 is increased, it will be favored by investors and this will lead to a reduction in the demand of other assets, which will lead to a decrease in their prices. This fall in the prices of assets will affect the covariance of the portfolio.ii. The standard deviation of asset 2 is increased:

When the standard deviation of Asset 2 is increased, the risk of investing in the asset will increase, leading to a reduction in its demand. This will make it less preferred by investors, resulting in a reduction of its share in the portfolio.iii. The standard deviation of asset 3 is increased: When the standard deviation of Asset 3 is increased, its risk increases, making it less attractive to investors and reducing its share in the portfolio.iv. The correlation between assets 3 and 5 is increased: The increased correlation between the two assets will lead to an increase in the covariance of the portfolio, which increases its risk. As a result, investors will try to reduce their holding in the assets, leading to a decrease in the share of Asset 2.(b) Asset 4 has E[R4] = 7.4% and SD = 21% meaning it is at least as risky as the other risky assets, and has a lower expected return than any of the other risky assets.

In other words, it appears to be a dominated asset. Why does it have a positive weight in the optimal portfolio?Asset 4 has a positive weight in the optimal portfolio because it has a lower correlation with the other assets. The negative correlation between Asset 4 and the other assets, which have a positive correlation among themselves, can lead to a decrease in the overall risk of the portfolio. Thus, the weight of Asset 4 in the optimal portfolio is not zero.

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Related Questions

Which excerpt from Nathaniel Hawthorne’s "Dr. Heidegger's Experiment" best reveals the allegorical nature of this short story?

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Answer:

that best reveals the allegorical nature of this short story is option D. "With a shuddering impulse, that showed her a woman still, the widow clasped her skinny hands before her face, and wished that the coffin-lid were over it, since it could be no longer beautiful. "

Explanation:

HELP!!!!!!! WORTH 20 POINTS!!!!!!!!!! Refer to Passage 2 Excerpt from Letter From Birmingham Jail.

Based on the excerpts, which is the best description of King's overall tone throughout the letter?

A. respectful but stern


B. disrespectful but friendly


C. neutral and righteous


D. sarcastic and angry


Refer to Passage 2 Excerpt from Letter From Birmingham Jail.

Which of the following details from the text best supports the answer to the question above?

A. "Birmingham is probably the most thoroughly segregated city in the United States."


B. "Sometimes a law is just on its face and unjust in its application. For instance, I have been arrested on a charge of parading without a permit."


C. One day the South will know that when these disinherited children of God sat down at lunch counters, they were in reality standing up for what is best in the American dream…"


D. "Let me take note of my other major disappointment. I have been so greatly disappointed with the white church and its leadership. Of course, there are some notable exceptions. I am not unmindful of the fact that each of you has taken some significant stands on this issue."

Answers

The best description of King's overall tone throughout the letter is respectful but stern. So the right option is (A) respectful but stern.

The excerpt from Letter From Birmingham Jail suggests that King's tone is very respectful and calm but also shows some sternness as he addresses the criticisms of his actions.According to the given excerpt, "Letter from Birmingham Jail," which is one of the important documents of the Civil Rights movement, the tone of Martin Luther King Jr. is best described as "respectful but stern.

"In the excerpt, he respectfully disagrees with the criticism and judgement that the Birmingham clergymen had levelled against him and his actions. He also shows his calmness by quoting the authorities of the Bible and the Constitution. For example, he mentions: “Injustice anywhere is a threat to justice everywhere.”

The tone is also stern because he doesn't hesitate to call out the leaders of the white church and express his disappointment in their lack of action to combat injustice.

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2.
Do you think Banquo believes Macbeth killed the King?​

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Answer:

banque blives macbeth killed king

Based on Percy's and Poseidon's interaction at Mount Olympus, what can you infer about Poseidon's true feelings for Percy?​


please answer fast!!!

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He feels glad his son is coming to see him

Percy's father rules the sea. Poseidon can be difficult to read and interpret and Poseidon is very much proud to be his dad.

What do you mean by the theme of this novel?

In this novel, the themes are identity and normalcy, heroism, friendship, family, belongings, deceit, and loyalty.

Like the sea, Poseidon's is very hard to interpret and difficult to read. Percy doesn't know whether his dad loves him or not but Poseidon is very proud to be his dad.

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Read the sample writing prompt below. Hockey great Wayne Gretzky said, "You miss 100% of the shots you don’t take.” Write about a time you attempted to accomplish a goal. Explain why it was important to attempt to reach that goal. What is the purpose of this assignment? to write about how quotes can be inspiring to write about Gretzky never missing a shot to write about achieving something to write about the importance of trying

Answers

Answer:

D.

Explanation:

To write about the importance of trying.

Answer: d

Explanation:

i just did the quiz

in mami and papi what type of conflict do mami and her daughter esmeralda have?


A. individual versus individual


B. individual vs nature


C. individual versus self


D. individual vs society

Answers

Without any context I’m assuming they are two people so it’s A

Answer:

b

Explanation: i took the test

Please help I will mark brainliest

This very simple

Answers

Answer:

1. It's D

2.It's B

3.It's C

Explanation:

It's correct

Answer:

6 = D

7 = B

8 = B

Explanation:

say if these words are adverbs, verb, noun, with the definitions and then put a made up sentence.my homework is in word

Answers

Answer:

Abandon-verb

Bouquet-noun

Capable-Adjective

Deceive-verb

Sausage-noun

Business-noun

Practice-noun

Frightened-adjective

Naughty-adjective

Gossip-noun/verb

Idle-adjective/verb

Privilege-noun/verb

Recipe-noun

Wealthy-adjective

Bizarre-adjective

Explanation:

1) To condemn someone or something to (a specified fate) by ceasing to take an interest in them.

2) An attractively arranged bunch of flowers, especially one presented as a gift or carried at a ceremony.

3) Having the ability, fitness, or quality necessary to do or achieve a specified thing.

4) To deliberately cause (someone) to believe something that is not true, especially for personal gain.

5) An item of food in the form of a cylindrical length of minced pork or other meat encased in a skin, typically sold raw to be grilled or fried before eating.

6) A person's regular occupation, profession, or trade.

7) The actual application or use of an idea, belief, or method, as opposed to theories relating to it.

8) To have made (someone) afraid or anxious.

9) (Especially of a child) badly behaved; disobedient.

10) noun: casual or unconstrained conversation or reports about other people, typically involving details that are not confirmed as being true.

verb: To engage in casual conversations about other people, typically involving details that are not confirmed as being true .

11) adjective: (Of a person) avoiding work; lazy.

verb: To spend time doing nothing.

12) noun: A special right, advantage, or immunity granted or available only to a particular person or group.

verb: To grant a privilege or privileges to.

13) A set of instructions for preparing a particular dish, including a list of the ingredients required.

14) Having a great deal of money, resources, or assets; rich.

15) Very strange or unusual.

- When Louie leaves a note in his footlocker that says, “If we're not back in a week
help your self to the booze” this is an example of what literary technique? (page
96)

Answers

A figure of speech I think

What's the reason that Kennedy believes space exploration is a dream worth pursuing ?

Answers

Answer:

President Kennedy understood the need to restore America's confidence and intended not merely to match the Soviets, but surpass them. On May 25, 1961, he stood before Congress to deliver a special message on "urgent national needs." He asked for an additional $7 billion to $9 billion over the next five years for the space program, proclaiming that "this nation should commit itself to achieving the goal, before the decade is out, of landing a man on the Moon and returning him safely to the earth." President Kennedy settled upon this dramatic goal as a means of focusing and mobilizing the nation's lagging space efforts.

Brainlist Pls!

A water molecule can be broken down into _____
and _____ atoms.

Answers

Answer:

hydrogen & oxygen

Explanation:

:)

Answer:

Hydrogen and oxygen atoms

in poetry, what is rhythm?
ОА
a kind of poem intended to be sung and written in ballad meter
a unit of verse made up of two lines with the same end-rhymes
Oc. a musical quality produced by the repetition of stressed and unstressed syllables
ОВ. .

Answers

Answer:

A musical quality produced by the repetition of stressed and unstressed syllables.

Explanation:

Hope this helps :)

why is it better to receive support when achieving goals ?

Answers

Answer:

You are more likely to succeed if you don't want to let those around you down and if you have the additional support you need when the going ultimately gets tough. If the people in your life don't understand your goal, or aren't willing to provide assistance, then it is important that you look elsewhere.

Explanation:

His first movies X-Men and Spider-Man—were very popular and made lots of money.

A movies—X-Men movies—, X-Men

B movies, X-Men movies, , X-Men

C movies . . . X-Men movies . . . , X-Men

D correct as is

Answers

Answer:

answer is (C) movies ....x-men moveis ....,x-men

His first movies X-Men and Spider-Man—were very popular and made lots of money is movies. X-Men movies  , X-Men.

Who is Spider man?

A superhero named Spider-Man can be found in American comic books produced by Marvel Comics.

He has appeared in novels, plays, video games, comic comics, and television series. Peter Parker, a teenage high school student who was raised by his Aunt May and Uncle Ben in New York City after his parents Richard and Mary Parker perished in a plane disaster, is Spider-cover Man's identity.

Lee and Ditko offered the character a number of supporting characters, including Flash Thompson, J. Jonah Jameson, and Harry, to help him deal with the difficulties of adolescence and financial problems.

Therefore, His first movies X-Men and Spider-Man—were very popular and made lots of money is movies. X-Men movies  , X-Men.

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Pls help!!
Why is it difficult to avoid attachment?

Answers

Answer:

Attachment is a fundamental part of Human nature.

Explanation:

Answer:

that's good question

Explanation:

I don't know....

what is a scholarship ​

Answers

Answer:  a grant or payment made to support a student's education, awarded on the basis of academic or other achievement.

Explanation:

pleaseeeee helpppp!!! i really need help on this and i’m so confused and if i don’t do it then my teacher said i’m gonna fail

Answers

Answer:

Revise over Dr. Kings Letter and explain how he uses Ethos, Pathos, and Logos in his letter and go over how his letter was a successful argument with the use of Ethos Pathos Logo.

Explanation:

Hope this helps, I really do. I don't want you to fail so use what I told you if not try to ask your teacher or friends for help or what they are doing with this assignment.

In which special occasion speeches would humor be the an expected and important aspect?

Answers

One special occasion speech where humor is an expected and important aspect is the graduation speech. Graduation speeches are delivered by a prominent person to congratulate and encourage students who are graduating from high school, college, or university.

They frequently include humorous anecdotes or jokes that lighten the mood and make the audience laugh. These speeches are usually intended to be inspiring, yet lighthearted, which makes the audience feel more comfortable and at ease. The speaker usually congratulates the graduates on their success and offers advice on how to pursue their future careers, but also provides some levity by adding humor.

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I NEED HELP PLEASE!! Grades are due tomorrow and this will bring up my grade please help. And the book is called all quiet on the western front

Answers

To help you out you can literally search up the answers for that book! Search them up and restate the answers!! Don’t copy exactly what given! Hope this help!

How do you think the American people felt when Jackson began including more Americans who were able to vote?

Answers

Answer:

many Americans were probably angry (especially the cishet white men) because for the beginning of the nation they were the only ones that had rights and now they are being forced to share those rights. on the flip side tho POC were probably happy and wanted change

Identify the line from “On Beholding the Mountain” that employs personification.

As all alone I stand, when from beyond
The mount our heav’n-sent monarch’s throne doth crown.
There breathes the twilight wind and turns my sleeve.
On this long toilsome road; I burn, I burn!

Answers

Answer:

There breathes the twilight wind and turns my sleeve.

Explanation:

wind cannot breath, therefore this is an example of personification.

Please hurry will give points

Answers

I believe the answer to this question is is A.

how dose the action of hamlet's impact the relationship with Ophelia​

Answers

Answer:

Ophelia is hurt so deeply by Hamlet's cruel words and his accusations that she uses her feminine nature to deceive men. Hamlet is so consumed by grief and the desire for revenge that he calls Ophelia a 'breeder of sinners' and suggests that she 'get thee to a nunnery. ' He also tells Ophelia he 'loved (her) not.

Explanation:please give brainliest trying to see how mnay i can get and ask me to be friend.

Which of the following might an author use to describe a character? Select all that apply.
how others describe the character a.symbol
b.actions
c.setting
d.dialogue

NO LINKS PLS!!!​

Answers

b. actions and d. dialogue

What is an organ made of?

Answers

Answer:

Tissues and cells

Explanation:

Different tissues make up different organs for a certain purpose to help the organism live.

TKAM Chapter 2 - Summarize the chapter in 5 sentences

Answers

Answer:

Dill leaves Maycomb at the end of summer. In the wake of his departure, Scout’s only comfort is the thought of starting school, her brother walks her to class on the first day, explaining that, as a first grader, she isn’t to hover around him at recess, talk about their home lives, or embarrass him in any way. This fact takes Scout by surprise, as does her misunderstanding with her first grade teacher, Miss Caroline( she is new in town)  Miss Caroline assumes Scout is being insolent and whacks her on the hand with a ruler. Later, when class lets out, Scout sees Miss Caroline sink into her chair, discouraged by her first day, but there’s bad blood between them now, and Scout doesn’t feel sorry for her.

Explanation:

"like the crazy quilts that have been one of its great folk-art forms"? How does this description support her claim?

Answers

Hello. Your question is incomplete, but after searching, I managed to find the full version of it and I found that you forgot to say that it is about the article "A Quilt of a Country" written by Anna Quindlen.

In this article, Quindlen states that the USA consists of a great cultural chaos, since it is formed by a diversity of cultures and elements that do not complement each other, that are competently different from each other and are not able to establish harmony between them. This is all the right recipe to create a country that didn't work, but even so, the US is able to work and function as a unit. To support this argument, she compares the country with a patchwork quilt, which is formed by a crazy combination of pieces of fabric that are completely different and inharmonious, but capable of creating a functional, popular and even appreciable quilt.

"You are what you dream of. You are what you think of. And, you are what you do." Describe the statements in your own words.

(Plzzzz answer correctly)

Answers

I think it means that you are you. Your actions represent yourself and you are the only one who can make decisions for yourself. If you go and get arrested for stealing, that's who everyone knows you as. So, therefore, you are what you do, as in you are who you act like.

A magazine publisher has decided to buy a new printing press. It is so large, it will fill an entire room. What type of product have they purchased?

Major equipment

Business service

Accessory equipment

Component part

Answers

Answer:

The product is classified as Major Equipment

What does thanksgiving mean in the catholic view

Answers

Answer: the act of giving thanks; grateful acknowledgment of benefits or favors, especially to God. an expression of thanks, especially to God. a public celebration in acknowledgment of divine favor or kindness. a day set apart for giving thanks to God.

Explanation:

Answer: Catholics deserve the credit not only for the first Thanksgiving, but for the first real religious freedom in America. Not the Puritans whom we call Pilgrims.

Explanation:

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No entry is required brief comparison of the the behavioral implementation of a multiplexer described in the background section with the multiplexer you described in the previous lab using structural and dataflow. 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 6% coupon, semiannual payment ($30 payment every 6 months). the bonds currently sell for $822.87. if the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? do not round intermediate calculations. round your answer to two decimal places. Tsangoni CC is a company which manufactures, sells and services mountain bikes in Cape Town, South Africa. The financial director of the company, Ingiphile, is struggling with the preparation of the financial statements for the year ended 31 August 2021 and has asked for your assistance.Bicycle frames:Tsangoni CC imports the majority of its bicycles and the parts required for maintenance from Europe. On 1 February 2021, an order for the shipment of bicycle frames was placed by Ingiphile. The terms of the order were as follows:Date of order 1/2/2021Supplier Sensa Bicycles Ltd (Netherlands)Customer Tsangoni CCProduct 10 "Sensa Romagna" framesShipping date 1/3/2021Price R5 000 per framePayment terms Full payment to be made on 1/3/2022Shipping terms FOB shipping pointThe shipment was made on 1 March 2021, and the inventory was received on 27 May 2021.A fair interest rate of 12% applies.Property, Plant and Equipment (PPE):PPE is comprised of two assets: a servicing machine and a delivery vehicle.Tsangoni CC purchased the servicing machine for the servicing of bicycles for R110 000 on 1 September 2019. Ingiphile felt that the consumption of future economic benefits would be best represented by the number of bicycles it serviced, which was estimated to be 750 bicycles. The servicing machine serviced 34 bicycles from 1 September 2019 to 31 August 2020 (the previous financial year) and 43 bicycles from 1 September 2020 to 31 August 2021 (the current financial year). The machine could be sold at the end of its useful life for R4 000Tsangoni CC purchased the delivery vehicle for R120 000 on 1 October 2020. Ingiphile estimated the useful life to be 5years. The vehicle can be sold at the end of its useful life for R12 000 if costs of R2 000 are incurred to have it serviced.1.1Discuss when and at what amount the bicycle frames should be initially recorded in the financial statements of Tsangoni CC. You should apply the relevant definition and recognition criteria as per the Conceptual Framework in your discussion. what building category is for structures that generally are not occupied but require construction permits? What do you think is the most difficult task of being a composer? 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D) We had pet-insurance but still owed $40 in fees. whoever answers it correct first gets brainlest