Standard deviation of return on your clients portfolio

Assignment Help Financial Management
Reference no: EM131510043

You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.6%. Your client chooses to invest $90,000 of her portfolio in your equity fund and $60,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.)

Reference no: EM131510043

Questions Cloud

Calculating depreciation using the straight-line method : Explain the impact of calculating depreciation using the straight-line method versus an accelerated method on the amounts shown on a balance sheet.
The method of allocating service department costs : The method of allocating service department costs that allocates the costs to both service departments and operating departments is the:
Frequency of the heterozygotes : What would be the frequency of the heterozygotes for that trait if the population is in Hardy=Weinberg equilibrium?
Examine the team building techniques found in the pmi : Examine the team building techniques found in the PMI article titled "Team Building and Development in a Matrix Environment".
Standard deviation of return on your clients portfolio : What is the expected return and standard deviation of return on your client’s portfolio?
Do they offer live chat or a customer help line or faq page : Write a 2-3 page critique of a user manual of your choice Identify the title of the manual and the product used or, if the manual is online, provide a link.
How cults come into existence : 12 paper on cults and religion, talking about how they come into play for an indivdual with in our society.
Hardy-weinberg equilibrium for two alleles : In a population that is in Hardy-Weinberg equilibrium for two alleles, D and d. D shows complete dominance over
Find the value of your fund immediately : Find the value of your fund immediately after you make the last contribution 45 years from now.

Reviews

Write a Review

Financial Management Questions & Answers

  Does negative interest rate mean

Does a negative interest rate mean? Why would a government intentionally have a negative interest rate (potential economic benefits)?

  Which security is riskier

Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation coefficient with the market of -0.3, and a beta coefficient of -1.5. Security B has an expected return of 12%, a standard deviation of returns of 10%, a co..

  Do you think there is any risk associated with a strategy

Do you use money to invest that could have been used to pay off a credit card loan? If so, why? Do you think there is any risk associated with such a strategy?

  What was the average real return on the stock

What was the average real return on the stock? What was the average nominal risk premium on the stock?

  Explain what is the effective interest rate

The lender deducts this interest amount from the loan up front and gives you $17,500. In this case, we say that the discount is $2,500. What is the effective interest rate?

  How much would it be willing to lend the business owner

A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $3,000 per month for the next three years and then $6,000 per month for two years after that. If the bank is charging customers 10.00 percent APR,..

  What are ending retained earnings in the table

What are Ending Retained Earnings in the table below? Total Assets 300 Total Liabilities 120 Total Stockholder's Equity Beginning Retained Earnings 30 Ending Retained Earnings? Dividends 10 Revenues 190 Expenses 140 Net Income Cash 50

  Economists draw from breakdown of the bretton woods system

Japan has a higher ratio of stock market capitalization relative to GDP than the US. What would explain this? What lessons can economists draw from the breakdown of the Bretton Woods system? The Fed adopts an easier monetary policy. How is this likel..

  Particular type of bacteria grows

A particular type of bacteria grows at a rate of 17% per day. If my hyena got infected with 700 bacterium when his leg was cut by barbed wire, how many bacterium will be present in 3 days when I finally decide I need to take the hyena to the veterina..

  Estimating cost of capital measures-applying the ddm model

Procter and Gamble Co. (PG) has a June fiscal year-end. On June 30, 2006, analysts expected the company to pay $1.41 dividends per share in fiscal year 2007. The company's market beta is estimated to be 0.7.  Estimate P&G's cost of equity capital usi..

  Calculating cost of equity

Calculating cost of equity. The lo tech Co. Just issued a dividend of $1.80 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $41 a share, what is..

  What was the cash flow from operating activities

W.C. Cycling had $55,000 in cash at year end 2010 and $25,000 in cash at year end in 2011. The firm invested in property, plant, and equipment totaling $250,000. Cash flow from financing totaled +$170,000. What was the cash flow from operating activi..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd