Quantitative finance, finance, Other Engineering

Assignment Help:
A fund manager’s high growth portfolio is made up of 80% (w1) in shares and 20% (w2 ) in bonds. Over the course of year 2010, the returns from each asset class are expected to have the following characteristics:

• 7% p.a. expected mean return from shares
• 3% p.a. expected mean return from bonds
• 9% p.a. standard deviation of returns from shares
• 5% p.a. standard deviation of returns from bonds
• zero covariance of share and bond returns.

Calculate:
(a) the variance of the portfolio
(b) the expected return on the portfolio.

Related Discussions:- Quantitative finance, finance

Unidirectional fabric, Unidirectional Fabric A unidirectional (UD) ply ...

Unidirectional Fabric A unidirectional (UD) ply is one in which all of the fibres run in one direction only. A small amount of fibre or other material may run in other directio

Genetics, what is genetic engineering

what is genetic engineering

Second order decoupling approximation, The second order (two degree of free...

The second order (two degree of freedom) Dutch-Roll approximation is an approximation to the above fourth order system for the Dutch Roll dynamics. A justification for this is to c

The finite element method fem, The finite element method The fini...

The finite element method The finite element method (FEM), sometimes referred to as finite element analysis (FEA), is a computational technique used to obtain approximate

Cash flow diagrams, Cash Flow Diagrams We will use a cash flow approac...

Cash Flow Diagrams We will use a cash flow approach to analyze the flow of money through out a planning horizon. A cash flow occurs when money actually change hands. We will u

Time value money, I want to buy a car. The Msrp is $31,000. I pay $516 per ...

I want to buy a car. The Msrp is $31,000. I pay $516 per month for five years. The quoted apr is 6.9%. I put down $800. How much did I pay for the car?

Shift registers, Shift registers A register is a number of flip-flops a...

Shift registers A register is a number of flip-flops arranged in a circuit used for storing data.  A shift register is one that is designed to move the data along the register.

Thermo electric thermometer, how thermoelecteric thermometer is contructed ...

how thermoelecteric thermometer is contructed and how it working

Write Your Message!

Captcha
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