User Account

All Pages

What passive portfolio comprised of a market-index portfolio

Assignment Help Portfolio Management
Reference no: EM131147949

Part A) a mutual fund with beta of .8 has an expected rate of return of 14%. If the risk free rate =5%, and you expect the rate of return on the market portfolio to be 15%, should you invest in this fund? What is the fund's alpha?

Part B) What passive portfolio comprised of a market-index portfolio and a money market account would have the same beta as the fund? Show that the difference between the expected rate of retun on this passive portfolio and that of the fund equals the alpha from part a.

Reference no: EM131147949

Questions Cloud

Prepare a script that would accumulate your user name : The first part of your assignment is to prepare a script that would accumulate your user name, date and time, your computer information and a command running into a log that would be mailed to your instructor.
Create more effective message in terms of content and tone : Choose a business message to evaluate. You could find a recent letter you have received from a business, go to a website or choose a message for customers or a message specified by your instructor. Assume that you are a consultant to the company that..
How can nurses apply leadership strategies to facilitate : Select one of the factors presented in this week's Learning Resources: organizational culture, organizational change management, or nursing leadership skills. How might this factor contribute to challenges experienced during an informatics impleme..
What is the oil viscosity if the pressure drop is 250 kpa : what is the oil viscosity if the pressure drop is 250 kPa?
What passive portfolio comprised of a market-index portfolio : What passive portfolio comprised of a market-index portfolio and a money market account would have the same beta as the fund?
Which plant capacity will maximize expected lifetime profits : Roll-Tech Corporation (RTC) wants to begin producing and selling one of its products in Eastern Europe. Because of the nature of the production process, manufacturing plants can only be built with a capacity of 100,000 units per year, at a cost of $5..
Compute deep sea seafoods current ratio and acid-test ratio : Restate Deep Sea Seafood's current accounts to conform to GAAP. Compute Deep Sea Seafood's current ratio and acid-test ratio before and after your corrections. Determine Deep Sea Seafood's correct net income for 2016.
What is the maximum horizontal distance the exit jet carry : what is the maximum horizontal distance the exit jet will carry?
Difference between destructive and constructive conflict : Describe in detail the difference between a destructive and constructive conflict. Describe at least four characteristics of each type of conflict, and use specific examples from your experience to describe each.

Reviews

Write a Review

Portfolio Management Questions & Answers

  Why does high risk aversion lead to quick trading

How would the presence of memory effects in market impact change the trade optimization results displayed in Fig. 16.5? In Fig. 16.5, why does high risk aversion lead to quick trading?

  What was annual discount rate at which bond was purchased

What was the annual discount rate at which the bond was purchased by the Fund Soles? According to the previous year, if in August the exchange rate was 3.32 PEN per dollar and today is 3.20.

  What would you expect to happen to unit labor cost

It is estimated that next year hourly wage rates will increase by 7 percent and productiv- ity will increase by 5 percent. What would you expect to happen to unit labor cost?

  What is the liquidity value of the firms assets

What is the liquidity value of the firm's assets? Are these assets available for liquidation (are there any claims against them)? In many cases, asset sales are a critical part of the strategy for a leveraged buyout.

  How to detect media bias and propaganda in national

How to detect media bias and propaganda in national and world news.

  Should ibm now be classified as value stock or growth stock

Given your analysis, would all of the various firms shown in the exhibit still qualify to be included in the same portfolio? In particular, should IBM now be classified as a value stock or a growth stock?

  Discuss reason for adding broader mix of international bonds

Robert Devlin and Neil Parish are portfolio managers at the Broward Investment Group. Identify and discuss two reasons for adding a broader mix of international bonds to the pension portfolio.

  Significance for international finance

Details on how to carry out the project. Instead you are given guidance as to how you might go about these tasks and offered consultation services. How you construct the project is an important part of the project itself.

  Discuss the development of exchange traded funds

Discuss the development of exchange traded funds (ETFs) in the United States. How do these ETFs differ from conventional equity mutual funds? Please discuss what is meant by the Sharpe Ratio, the Treynor Ratio, theSortino Ratios, and Jensen'..

  You currently work in an algorithm development group for a

you currently work in an algorithm development group for a large multimedia mobile device corporation. your group has

  Compute daily net advance-decline line for each of five days

Compute the daily net advance-decline line for each of the five days. Compute the cumulative advance-decline  line for each day and the final value at the  end of the week.

  What advice should you give to your neighbor

From talking with her, you find out she was planning on taking all the money out of her company's retirement plan and investing it in bond mutual funds and money market funds. What advice should you give her?

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