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Descripation of study financial statment

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Assignment
Analysis of financial statement
Submitted To
Sir. Waseem -Ukllah
Submitted By
Rana Ali Amir
Roll-No
10032054-103
Section
M.Com (Av)

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Portfolio Risk & Return
In the given covariance matrix the things which are given are as follows:
Company
E(ri)
Apple
Mango
Orange
Apple
0.20
0.09
0.045
0.05
Mango
0.12
0.045
0.07
0.04
Orange
0.15
0.05
0.04
0.06
In this condition we spouse that each stock has equal weights.
1/3= 0.333
Solution:
Expected Return of the Portfolio:
Formula:

  

  

By putting values:

= .066 + .0396 + .0495 = 0.1551 = 15.51%
Variance
Formula:
 
 
 

 

 

(OR)
 
 
 

 

 

By putting values






 





 





 
















 

 

          

Standard Deviation of the Portfolio:
Formula:
By putting values

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Assignment Analysis of financial statement Submitted To Sir. Waseem -Ukllah Submitted By Rana Ali Amir Roll-No 10032054-103 Section M.Com (Av) Portfolio Risk & Return In the given covariance matrix the things which are given are as follows: Company E(ri) Apple Mango Apple 0.20 0.09 0.045 Mango 0.12 0.045 0.07 Orange 0.15 0.05 0.04 Orange 0.05 0.04 0.06 In this condition we spouse that each stock has equal weights.  1/3= 0.333 Solution: Expected Return of the Portfolio: Formula: 𝑬[𝑹𝑷 ] = 𝜔1 𝐸[𝑅𝐴 ] + 𝜔2 𝐸[𝑅𝑀 ] + 𝜔3 𝐸[𝑅𝑂 ]  By putting values: 𝐸[𝑅𝑃 ] = (.33)(.20) + (.33)(.12) + (.33)(.15) = .066 + .0396 + .0495 = 0.1551 = 15.51% Variance Formula: σ2P = ω12 σ2A + ω22 σ2M + ω23 σ2O + 2ω1 ω2 ρAM σA σM + 2ω2 ω3 ρMO σM σO + 2ω1 ω3 ρAO σA σO (OR) 𝟐 2 2 2 2 2 2 𝝈𝑷 = ω1 σA + ω2 σM + ω3 σO + 2ω1 ω ...
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