CBO- iShares 1-5 Year Laddered Corporate Bond Index ETF- and XIU-iShares S&P/TSX 60 Index |

CBO- iShares 1-5 Year Laddered Corporate Bond Index ETF- and XIU-iShares S&P/TSX 60 Index ETF- are two iShares ETFs tracking the Canadian bond market and Canadian equity market, respectively. Thus, they are popularly used by Canadian investors as proxies for Canadian bond and equity markets. You can find out the historical closing prices of CBO and XIU from the following website:

http://ca.ishares.com/product_info/fund/index.htm

or any other source.

Download the most recent three years weekly data.

Suppose that now you have $80 million to invest for six months and you want to invest those money into CBO, XIU and the Canadian 6-month T-bill. Assume that the interest rate of the 6-month T-Bill is 2% per annum.

Use EXCEL to answer following questions:

1) Estimate the weekly expected returns, standard deviations of CBO and XIU,

respectively, and their correlation and covariance. Then convert them into those with

six-month (26 weeks) horizon.

2) Draw the opportunity set offered by these two securities.

3) What is the optimal portfolio of CBO and XIU? What are the expected return and

standard deviation of this portfolio?

4) Choose your degree of risk aversion with a range of the A value from 1 to 8.

5) Determine your optimal asset allocation among CBO, XIU, and T-Bill, in percentage, dollar amounts, and number of shares. What are the expected return and standard deviation of your complete portfolio?

Attach first and last pages of your spreadsheets to your assignment. However, you should answer the questions in a separate paper. Only one submission is needed for each group.

Show more







Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10