### Compute the expected return and standard deviation

Assignment Help Corporate Finance
##### Reference no: EM1345573

The U.S. market has an expected return of 12% and a standard deviation of 22%. An index mutual fund that matches the Morgan Stanley Europe, Australia, and Far East Index (EAFE) has an expected return of 14% and a standard deviation of 30%. The U.S. market and the EAFE fund have a correlation coefficient of 0.5%. Kramer was considering investing in a portfolio that is 58% invested in the U.S. and 42% invested in the EAFE Fund. Calculate the expected return and standard deviation of this portfolio.

### Previous Q& A

#### Find how much would the value of the company change

Show the Change in value of the company if it accepts the replacement project - Find how much would the value of the company change if it accepts the replacement project?

#### Java program to declares integer array

Write a complete Java program to declares integer array, intArray, and initialize it to {1, 2, 3, 4, 5, 6, 7}.

#### Example on project selection

Do I have to do a cash flow and How? What should I recommend for John ? Can you help me make logical assumptions and justifications about what he should do - What would you recommend John do? Make logical assumptions and justify all of these before..

#### Compute current stock price

Otobai Motor Corporation is currently paying a dividend of \$1.40 each year. The dividends are expected to grow at a rate of 18% for next 3-years and then a constant rate of 5 percent thereafter forever.

#### Explaining leverage data from across enterprise

Many companies have executed ____________ to enable managers and knowledge workers to leverage data from across enterprise.

#### What is the weight of the drop

What is the weight of the displaced amount of water when the boulder is placed inside the tank (measured in N)? The tank had an original volume of water of 5000 L. while the boulder got placed inside the tank, the volume of water rose to 5010.165 ..

#### Find risk premium on the market

Risk Free rate 4 percent and the expected return on the market portfolio is 12%. Using the capital asset model:

#### What is the severity of this change

What is the requested change and what is the severity of this change - what is the severity of this change

#### What will be the final temperature of the mixture

An archer pulls her bow string back 0.40m by exerting a force that increases uniformly from zero to 25 N. How much work does the archer do in pulling back the bow.

#### Describe the overall planning and budgeting process

I need information in regards to Carolina medical center in North Carolina and considering & budgeting and describing on the topics below.

### Similar Q& A

#### Journal entries related to bonds

Journal entries related to bonds - What consolidation journal entry would have been recorded in connection?

#### Questions based on internal service fund and general fund

The City of Carefree voted to establish an internal service amount to account for its printing services. The City transferred \$500,000 cash from General Fund to the newly created internal service amount.

#### Prepare companys consolidated balance sheet

Evaluate the three largest assets. Be sure to look at all the assets, not just the current assets and describe whether you believe the company has invested in the appropriate types of assets for this company.

#### Purpose the journal entry to record the issuance of the bond

Bond issue and Bond retirement Journal entries, Bond amortization Schedule using effective interest method - Purpose the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2005.

#### Find coleman''s overall or weighted average

Computation of cost of capital ignoring the floatation costs - WACC and Find Coleman's overall, or weighted average, cost of capital (WACC)? Ignore flotation costs.

#### Calculate stock beta

The standard deviation of stock returns for Stock A is 30 percent. The standard deviation of the market return is 20 percent and correlation between Stock A and the market is .75.

#### Find expected npv and standard deviation npv

The managers of Merton Medical Clinic are analyzing a proposed project. The projects most likely NPV is \$120,000, but, as evidenced by the following Net Present Value distribution,

#### Discuss the characteristics of resort business

The estimation of Kitty (Hawk Food), Inc., a restaurant food wholesaler in eastern Carolina. The company is experiencing difficulty paying trade debt & collecting trade receivables on time,

#### Determine effect of economic exposure

Longhorn a firm based in Mexico but purchases its materials in Philippines. If the peso strengthens what effect will this have in terms of economic exposure?

#### Calculate the wacc and npv

Rye Baking Corporation is planning replacing its manual bread mixing and baking process with a new mixing and baking machine for its specialty breads.

#### Issuing or purchasing preferred stock

You are told that one corporation just issued 100m dollar of preferred stock & another purchased 100m dollar preferred stock as an investment.

#### Explain how would allgreens compare with the industry

Explain how would Allgreens compare with the industry if it oper-ates in the same industry as Dayco and if the industry average ratios remain the same over time?