What set of weights would give you an expected

Assignment Help Financial Management

Reference no: EM131247204

You currently have 50% of your wealth in a risk-free asset and 50% in the four assets below:

If you want an expected rate of return of 12%, you can obtain it by selling some of your holdings of the risk-free asset and using the proceeds to buy the equally weighted market portfolio.

If this is the way you decide to revise your portfolio, what will the set of weights in your revised portfolio be? If you hold only the risk-free asset and the market portfolio, what set of weights would give you an expected 12% return?

Reference no: EM131247204

Questions Cloud

Calculate the covariance between portfolio a : Calculate the covariance between portfolio A, which has 10% in asset 1 and 90% in asset 2, and portfolio B, which has 60% in asset 1 and 40% in asset 2:

Draw a set of indifference curves : On a new graph draw the same budget line you found in part (a). Now draw a set of indifference curves that illustrates why Toni might not be better off with the frequent flyer program.

How would you combine the knowlode fund : Suppose that securities are priced as if they are traded in a two-parameter economy. - How would you combine the Knowlode Fund and a riskless security to obtain a portfolio with a volatility (beta) of 1.6?

Possible a graphical calculator : Evaluate f(x)=(2x^4-(3^x/100)) for at least five values of x between 0 and 1. Use this and possible a graphical calculator to evaluate limx->0 (2x^4-(3^x/100))

What set of weights would give you an expected : If this is the way you decide to revise your portfolio, what will the set of weights in your revised portfolio be? - what set of weights would give you an expected 12% return?

Write down the expressions for the total average delay : ECTE 962 Telecommunications System Modelling Assignment. Write down the expressions for the total average delay (W) in the system, as well as other relevant indicators such as the size of queues at intersections. Clearly state any assumptions that ..

Is this theory consistent with the teachings of the bible : The authors (Hays & Erford, 2014) mentioned Grand Theories and gave examples of these theories (e.g., Psychodynamic, Cognitive-Behavioral). Select one of these theories and provide an overview of the propositions made by the theory. Does this th..

Review of the literature for environmental enrichment : Describe improvements or changes you made to your Study Design Proposal based on (1) feedback from marker and (2) your visit to Adelaide Zoo - Define stereotypic behaviour and give an example, and refer to a study/literature that has investigated i..

How the consumer ranks baskets a b and c : On the graph, shade in (and clearly label) the areas that are revealed to be (more) preferred to basket B, and explain why you indicated these areas

User Account

All Pages