What is the standard deviation of the portfolio

Assignment Help Financial Management

Reference no: EM132034068

1. Suppose you have a portfolio that is 70% in the risk-free asset and 30% in a stock. The stock has a standard deviation of 0.30 (i.e., 30%). What is the standard deviation of the portfolio?

A. 0.30 (i.e., 30%) B. 0.09 (i.e., 9%) C. 0.21 (i.e., 21%) D. 0

2. You have a total of $100,000 to invest in a portfolio of assets. The portfolio is composed of a risky asset with an expected rate of return of 15% and a standard deviation of 21% and a Treasury bill with a rate of return of 5%. How much money should be invested in the risky asset to form a portfolio with an expected return of 11%?

A. $60,000

B. $40,000

C. $70,000

D. $30,000

Reference no: EM132034068

Questions Cloud

Self-managed teams in the workplace : What are the purpose and objectives of self-managed teams in the workplace?

Possible controls on production and menu design : List the possible controls on production and menu design that you could put in place to improve profitability.

The initial investment outlay for spectrometer : What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?

Which social media outlets does the company use : Which social media outlets does the company use to reach the customer segment? Discuss elements of their campaign.

What is the standard deviation of the portfolio : The stock has a standard deviation of 0.30 (i.e., 30%). What is the standard deviation of the portfolio?

Explain the association that nutrition science has establish : Briefly explain the association that nutrition science has established between foods that contain certain forms of these nutrients.

How an IT system could be used to support CICs strategies : The first step is to look at the organization and explain how an IT system could be used to support CIC's strategies and objectives

Currently holds diversified portfolio of risky assets : You meet with Ms. X to review her investment objectives. Ms. X currently holds a diversified portfolio of risky assets (i.e the market portfolio).

How you would collaborate with the research stakeholders : Discuss how you would collaborate with the research stakeholders (e.g. service providers and community members) to ensure that the data are interpreted.

User Account

All Pages