46. The covariance matrix for a portfolio is given below.
You must be logged in to post a comment.
47. A portfolio manager had invested a total amount of $300,000 in stocks and fixed income instruments at the start of the year. Equity investments represented 60% of the portfolio and generated year-end return of 35%, whereas the fixed income instruments yielded 15%. The correlation of stock returns with fixed income instruments’ returns was found to be 20%. Based on the given data, the portfolio return would be closest to:
48. The table below shows information on two portfolios:
49. The table below shows weighting and returns of different asset classes comprising a portfolio:
50. Arvind Roy currently has two stocks in his portfolio. 30% is invested in Gala Cement and the remainder is invested in Aqua Fertilizer. The two stocks have been performing quite well over the years with expected returns and standard deviations as follows:
The expected return on the portfolio is 14.9%.
By adding Teragon’s stock, he will reduce his portfolio’s systematic risk.
The standard deviation of the portfolio is 14.2%.
UGC NET PAPER 1
UGC NET Management
UGC NET COMPUTER SCIENCE
UGC NET COMMERCE
GATE COMPUTER SCIENCE
CFA Level 1
Login with Facebook
Login with Google
Forgot your password?
Lost your password? Please enter your email address. You will receive mail with link to set new password.
Back to login