I have a question that I am stuck on. We were given 10 assets: T-Bill, US Equity

Question

I have a question that I am stuck on. We were given 10 assets: T-Bill, US Equity, Foreign EQ, Emerging EQ, US Bond, Foreign Bond, Merill Lynch HY Cash Pay, Commodity, Real Estate, and Hedge Fund. We were also given data for a select number of years . I was wondering if someone is able to give me some sort of direction for the following question.

Forming Risky Portfolios: Two Risky Assets

For the following questions, use historic returns, risks and the correlations of the assets from the

previous 8-year period as expectations for future returns and risks for the next 8-year period. For

example, construct portfolio for 1998-2005 using information from 1990-1997, and portfolio for

2006-2013 based on information from 1998-2005 respectively.

first use the two risky assets: Bonds and stocks market, to from the efficient frontier. Determine the weights of the riskt assets in the portfolio and compute the sharpe ratio of this efficient frontier.

What are the returns and risks of your constructed portfolios for 1 for the two periods? Note that after the weights are determined you will use a constant mix for the next 6-year period. How does the returns and risks compare with the 60/40 constant mix portfolio?

Hello, I have a question that I am stuck on. We were given 10 assets: T-Bill, US Equity, Foreign EQ, Emerging EQ, US Bond, Foreign Bond, Merill Lynch HY Cash Pay, Commodity, Real Estate, and Hedge Fund. We were also given data for a select number of years . I was wondering if someone is able to give me some sort of direction for the following question. Forming Risky Portfolios: Two Risky Assets For the following questions, use historic returns, risks and the correlations of the assets from the previous 8-year period as expectations for future returns and risks for the next 8-year period. For example, construct portfolio for 1998-2005 using information from 1990-1997, and portfolio for 2006-2013 based on information from 1998-2005 respectively. first use the two risky assets: Bonds and stocks market, to from the efficient frontier. Determine the weights of the riskt assets in the portfolio and compute the sharpe ratio of this efficient frontier. What are the returns and risks of your constructed portfolios for 1 for the two periods? Note that after the weights are determined you will use a constant mix for the next 6-year period. How does the returns and risks compare with the 60/40 constant mix portfolio?

Explanation / Answer

A portfolio manager is a body corporate who, pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise), the management or administration of a portfolio of securities or the funds of the client.

However, the regulations provide that the portfolio manager shall charge a fee as per the agreement with the client for rendering portfolio management services. The fee so charged may be a fixed amount or a return based fee or a combination of both. The portfolio manager shall take specific prior permission from the client for charging such fees for each activity for which service is rendered by the portfolio manager directly or indirectly (where such service is outsourced).

Major tasks involved with Portfolio Management are as follows.

There are basically two types of portfolio management in case of mutual and exchange-traded funds including passive and active.

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