Question
You manage a risky portfolio with an expected rate of return of 22% and a standard...
You manage a risky portfolio with an expected rate of return of
22% and a standard deviation of 34%. The T-bill rate is 6%.
Your risky portfolio includes the following investments in the
given proportions:
| Stock A | 31 | % |
| Stock B | 36 | % |
| Stock C | 33 | % |
Suppose that your client decides to invest in your portfolio a
proportion y of the total investment budget so that the
overall portfolio will have an expected rate of return of
18%.
a. What is the proportion y?
(Round your answer to the nearest whole
number.)
Y=
b. What are your client’s investment proportions
in your three stocks and the T-bill fund? (Do not round
intermediate calculations. Round your answers to 2 decimal
places.)
T-Bills=
A=
B=
C=
c. What is the standard deviation of the rate of
return on your client’s portfolio? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
SD=
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
You manage a risky portfolio with an expected rate of return of 17% and a standard...
You manage a risky portfolio with an expected rate of return of
17% and a standard deviation of 28%. The T-bill rate is 7%.
Your risky portfolio includes the following investments in the
given proportions:
Stock A
33
%
Stock B
35
%
Stock C
32
%
Suppose that your client decides to invest in your portfolio a
proportion y of the total investment budget so that the
overall portfolio will have an expected rate of return of
13%.
a....
You manage a risky portfolio with an expected rate of return of 18% and a standard...
You manage a risky portfolio with an expected rate of return of
18% and a standard deviation of 36%. The T-bill rate is 6%.
Your risky portfolio includes the following investments in the
given proportions: Stock A 27 % Stock B 35 % Stock C 38 %
Suppose that your client decides to invest in your portfolio a
proportion y of the total investment budget so that the overall
portfolio will have an expected rate of return of 15%
....
You manage a risky portfolio with an expected rate of return of 19% and a standard...
You manage a risky portfolio with an expected rate of return of
19% and a standard deviation of 33%. The T-bill rate is 7%. Your
risky portfolio includes the following investments in the given
proportions: Stock A 35 % Stock B 32 % Stock C 33 % Suppose that
your client decides to invest in your portfolio a proportion y of
the total investment budget so that the overall portfolio will have
an expected rate of return of 16%.
a....
Assume that you manage a risky portfolio with an expected rate of return of 15% and...
Assume that you manage a risky portfolio with an expected rate
of return of 15% and a standard deviation of 40%. The T-bill rate
is 5%.
Your risky portfolio includes the following investments in the
given proportions:
Stock A
24
%
Stock B
33
%
Stock C
43
%
Your client decides to invest in your risky portfolio a
proportion (y) of his total investment budget with the
remainder in a T-bill money market fund so that his overall
portfolio...
Assume that you manage a risky portfolio with an expected rate of return of 20% and...
Assume that you manage a risky portfolio with an expected rate
of return of 20% and a standard deviation of 44%. The T-bill rate
is 4%.
Your risky portfolio includes the following investments in the
given proportions:
Stock A
28
%
Stock B
37
%
Stock C
35
%
Your client decides to invest in your risky portfolio a
proportion (y) of his total investment budget with the
remainder in a T-bill money market fund so that his overall
portfolio...
You manage a risky portfolio with an expected rate of return of 22% and a standard...
You manage a risky portfolio with an expected rate of return of
22% and a standard deviation of 35%. The T-bill rate is 6%. Your
client chooses to invest 75% of a portfolio in your fund and 25% in
a T-bill money market fund.
Suppose that your risky portfolio includes the following
investments in the given proportions:
Stock A
33
%
Stock B
36
%
Stock C
31
%
What are the investment proportions of your client’s overall
portfolio, including...
Assume that you manage a risky portfolio with an expected rate of return of 12% and...
Assume that you manage a risky portfolio with an expected rate
of return of 12% and a standard deviation of 47%. The T-bill rate
is 4%. Your risky portfolio includes the following investments in
the given proportions: Stock A 31 % Stock B 31 % Stock C 38 % Your
client decides to invest in your risky portfolio a proportion (y)
of his total investment budget with the remainder in a T-bill money
market fund so that his overall portfolio...
Assume that you manage a risky portfolio with an expected rate of return of 16% and...
Assume that you manage a risky portfolio with an expected rate
of return of 16% and a standard deviation of 32%. The T-bill rate
is 6%.
Your risky portfolio includes the following investments in the
given proportions:
Stock A
28
%
Stock B
34
Stock C
38
Your client decides to invest in your risky portfolio a proportion
(y) of his total investment budget with the remainder in a
T-bill money market fund so that his overall portfolio will have...
Assume that you manage a risky portfolio with an expected rate of return of 14% and...
Assume that you manage a risky portfolio with an expected rate
of return of 14% and a standard deviation of 38%. The T-bill rate
is 4%.
Your risky portfolio includes the following investments in the
given proportions:
Stock A
22
%
Stock B
31
Stock C
47
Your client decides to invest in your risky portfolio a proportion
(y) of his total investment budget with the remainder in a
T-bill money market fund so that his overall portfolio will have...
Assume that you manage a risky portfolio with an expected rate of return of 12% and...
Assume that you manage a risky portfolio with an expected rate
of return of 12% and a standard deviation of 28%. The T-bill rate
is 4%. Your risky portfolio includes the following investments in
the given proportions: Stock A 20 % Stock B 30 Stock C 50 Your
client decides to invest in your risky portfolio a proportion (y)
of his total investment budget with the remainder in a T-bill money
market fund so that his overall portfolio will have...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 4 minutes ago
asked 8 minutes ago
asked 23 minutes ago
asked 41 minutes ago
asked 57 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago