sfm nov 17 que 6(a)
janvi (1234) (14 Points)
04 November 2017
what was the weight of security in that portfolio????? what was the answer?
in a situation where weights are not given means they are equally weighted. half half. we have to assume weight as 0.50 and 0.50.
so answer is:
take total of returns devide it by 5 (total number of years) = you will get average return for 1 security. do it for 2nd security also.
Return of portfolio = ( Weight 1 * average return of Security 1 ) + (weight 2 * average return of security 2)
weight = 0.50 for each.
Risk:
Using (X - X!) approach, deduct each year return from average return then square it.
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i did till this stage, i could not recall the formula to use without correlation. ?
i think this might be the way to solve that problem. dont know whether it is right or wrong. how you solved? anyone else?
janvi
(1234)
(14 Points)
Replied 04 November 2017
swathi jain sv
(Articled trainee)
(2 Points)
Replied 05 November 2017
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