Document 3 Please show all of your work. Remember to input your answer without a dollar sign ($) or a comma (,), and only up to 4 decimal places (i.e. 0.50) From the slides (see below), what is the...

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Document 3 Please show all of your work. Remember to input your answer without a dollar sign ($) or a comma (,), and only up to 4 decimal places (i.e. 0.50) From the slides (see below), what is the expected return of a 50/50 portfolio in Lululemon and Trip advisor? Suppose Lululemon and Wyndham Hotels had the exact same annual return of 17.5% (in the data, they are only approximately equal). If you could only invest in one of the three stock (Lululemon, Wyndham Hotels, and Trip Advisor), is there a stock – and if so, which – you would never invest in? From the slides, what is the standard deviation of the a 50/50 portfolio in Lululemon and Trip Advisor? From the slides, what would the standard deviation of the a 50/50 portfolio in Lululemon and Trip advisor be if Lululemon had a correlation with Trip Advisor of ρ = 0.2?
Answered 1 days AfterJan 12, 2021

Answer To: Document 3 Please show all of your work. Remember to input your answer without a dollar sign ($) or...

Sumit answered on Jan 14 2021
154 Votes
1.
    Portfolio:
    Annual Return
    Weightage
    Product
    Lululemon
    17.52%
    50.00%
    8.7600%
    Tri
p Advisor
    28.91%
    50.00%
    14.4550%
    
    
    
    
    Portfolio Return
    
    
    23.2150%
Hence the Portfolio Return will be 23.2150.
2.
    Stock
    Annual Return
    Annual Standard Deviation
    Lululemon
    17.50%
    37.14%
    Wyndham Hotel
    17.50%
    27.16%
    Trip Advisor
    17.50%
    45.84%
From the above table we can see that the return for all the stocks are equal but...
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