User Account

All Pages

What is the expected return and standard deviation of your

Assignment Help Finance Basics
Reference no: EM13478331

Suppose that you manage a fund with an expected rate of return of 12.5% and a standard deviation of 18%. The T-bill rate currently is 4%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund.

a) What is the expected return and standard deviation of your client's portfolio?

b) Suppose your risky portfolio includes the following investments in the given proportions:

Stock A 40%

Stock B 25%

Stock C 35%

What are the investment proportions of your client's overall portfolio, including the position in T-bills?

c) What is the reward-to-volatility ratio (S) of your risky portfolio and your client's overall portfolio?

Reference no: EM13478331

Questions Cloud

Compute the amount to which 500 will grow under each of the : find the amount to which 500 will grow under each of the following conditionsa. 12 percent compounded annually for 5
How do the poems by wordsworth and coleridge reflect each : how do the poems by wordsworth and coleridge reflect each poets philosophy as expressed in preface to lyrical ballads
Based on the information below calculate the weighted : based on the information below calculate the weighted average cost of capital.great corporation has the following
Current assets are expected to increase to 30 million over : steber packaging inc. expects sales next year of 50 million. of this total 40 percent is expected to be for cash and
What is the expected return and standard deviation of your : suppose that you manage a fund with an expected rate of return of 12.5 and a standard deviation of 18. the t-bill rate
What is the equivalent annual annuity for each machine : the perez company has the opportunity to invest one of two mutually exclusive machines that will produce a product it
To the nearest dollar how much must he save during each of : john adams is the ceo of a nursing home in san jose. he is now 50 years old and plans to retire in 10 years. he expects
I need you to write a journal about multiple intelligences : i need you to write a journal about multiple intelligences why is it important and explain 150 words as an
Comparative statement data for farris company and ratzlaff : comparative statement data for farris company and ratzlaff company two competitors appear below. all balance sheet data

Reviews

Write a Review

Finance Basics Questions & Answers

  Why were the irr and the pi revised

Some people take a position that the Return on Investment (RoI) is the appropriate measure or decision rule to use. Do you agree? Why or why not? How would the project's RoI be calculated?

  Determine value of the preferred share

A company issued a preferred stock which matures in thirty years and carries a maturity value of $45. The dividend is $4 per year over the 30 year period.

  What is the fair price for this portfoilio

The expiration date of the options are six months from now. The risk free interest rate is 5% per annum. What is the fair price for this portfoilio. Why?

  How much of the option premium

You have taken a long position in a call option on IBM common stock. The option has an exercise price of $136 and IBM's stock currently trades at $140. The option premium is $5 per contract.

  Calculate operating cash flow

A project has a contribution margin of 5$, projected fixed costs of $13,000, projected variable cost each unit of $12, & a projected present value break-even point of 5,500 units.

  Determine stock expected price today

Regarding of your work above, suppose that D0, which was just paid, = $1.00, D1= $1.20, D2 = = $1.40, D3 = $1.55, D4 = $2.00, D5 = $2.13, D6 = $2.27, and P3 = $80.00.

  What factors made you choose one over the other

For example, consider how you recently chose between two products or services offered by different companies. What factors made you choose one over the other? How do the companies compete?

  Does anybody have the financial statements to the government

Does anybody have the financial statements to the Governmental Accounting Practice Set- Province of Europa?

  If the suitable interest rate is 511 percent determine the

trigen corp. management will invest cash flows of 505197 636969 592910 818400 1239644 and 1617848 in research and

  Some may argue that the production-line approach may not

1.some may argue that the production-line approach may not treat the process as a service process but as what type of

  Compute internal rate of return and modified internal rate

Compute the internal rate of return and the modified internal rate of return for each of the following capital budgeting projects. The firms required rate of return is 14%

  Compute the standard deviation of a portfolio

Stock X has a standard deviation of return of 10 percent. Stock Y has a standard deviation of return of 15 percent. The correlation coefficient between stocks is 0.5.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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