1. What is the present value of $992 to be received in 13.5 years from today if our discount rate is 3.5 percent? Future Value (FV) 992 Interest Rate (i) 0.035 Number of years (n) 13.5 Answer-
Please show exact entries into the Excel cells
2. Preform portfolio analysis for the following portfolio. the portfolios retrun is 6.37%. Their benchmark allocation is 40% equities, 50% bonds and 10% cash. the return for their benchmark indices are 7.89% for equities, 4.56% for the bonds and 0.65% for the money markets. their actual allocations during the period were 49% in equities, 36% in bonds and 15% in cash. The portfolios actual returns in were 8.62% in equity, 5.69% in bonds and 0.68% in cash. What was the portfolios return attributbale to:
a. asset allocation
b. security selection